22 OCTOBER 2014AlCircle.com
Aluminium prices may face newer challenges
Edited by : AL CIRCLE
1 min read
The Director of metals research and strategy at Citigroup Inc. David Wilson stated recently that the unwinding of financial deals is likely to curb the upward climb for aluminium prices in the coming year.
According to Citigroup estimates, nearly 20% of the world’s aluminium supply amounting to roughly 10-15 million tons is currently being stored in various inventories across the world.
Analysts are saying, for the financial deals to really start unwinding there needs to be a situation where the future prices are lower than the current prices which will tempt traders to sell off their stock instead of waiting for future profits. Alternatively, rising interest rates could also make these deals less viable.
The head of commodities research at Natixis, Nic Brown says, “There could be a turning point at some point. If those financing deals become unprofitable, then you could see the situation changing quite rapidly.”
According to Citigroup estimates, nearly 20% of the world’s aluminium supply amounting to roughly 10-15 million tons is currently being stored in various inventories across the world.
Analysts are saying, for the financial deals to really start unwinding there needs to be a situation where the future prices are lower than the current prices which will tempt traders to sell off their stock instead of waiting for future profits. Alternatively, rising interest rates could also make these deals less viable.
The head of commodities research at Natixis, Nic Brown says, “There could be a turning point at some point. If those financing deals become unprofitable, then you could see the situation changing quite rapidly.”
Unlock full access – sign up for FREE.
Key benefits
Find exclusive data-driven insights and in-depth analysis
Get our daily newsletter delivered straight to your inbox
Access real-time and historical price trends from global indices
Post and respond to latest business leads
Stay ahead with alerts on learning tools
...and so much more!SIGN UP / LOGIN
Grow with
AL Circle
