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Aluminium stocks hit record 5.17m tonnes on LME
Edited by : AL CIRCLE
1 min read
Inventories of aluminium registered by the London Metal Exchange (LME) rose on Tuesday to an all-time record of 5.17 million tonnes in a market with a structural surplus.
Stocks have surged since the 2008 financial crisis as banks spotted money making opportunities from financing deals that effectively locked material in warehouses and as top producer China kept churning out metal as it subsidised loss-making plants to save jobs.
“Globally, excess capacity continues to plague the aluminium industry,” Wiktor Bielski, head of commodity research at VTB Capital, said in a note.
Stocks of the metal used in packaging and transport increased by a net 65,200 tonnes to 5,172,500 tonnes LME data showed, surpassing a previous record of 5,125,800 tonnes touched on Feb.20.
Most of the inflow on Tuesday, a net 56,725 tonnes, was delivered into Detroit warehouses, which have the largest stocks of aluminium, totalling 1.46 million tonnes.
The LME stocks have ballooned more than fivefold since the start of 2008, when they were at 933,750 tonnes, as banks arranged financing deals for aluminium.
Stocks have surged since the 2008 financial crisis as banks spotted money making opportunities from financing deals that effectively locked material in warehouses and as top producer China kept churning out metal as it subsidised loss-making plants to save jobs.
“Globally, excess capacity continues to plague the aluminium industry,” Wiktor Bielski, head of commodity research at VTB Capital, said in a note.
Stocks of the metal used in packaging and transport increased by a net 65,200 tonnes to 5,172,500 tonnes LME data showed, surpassing a previous record of 5,125,800 tonnes touched on Feb.20.
Most of the inflow on Tuesday, a net 56,725 tonnes, was delivered into Detroit warehouses, which have the largest stocks of aluminium, totalling 1.46 million tonnes.
The LME stocks have ballooned more than fivefold since the start of 2008, when they were at 933,750 tonnes, as banks arranged financing deals for aluminium.
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