Metal Bulletin
MB ALUMINIUM CONF: Producers, traders seen having upper hand in ’12 talks
Edited by : AL CIRCLE
1 min read
Aluminum producers and traders will have the upper hand in contract negotiations for 2012 as the mating season kicks off at Metal Bulletin’s 26th International Aluminium Conference in Paris, according to market participants.
While contracts aren’t expected to be signed at the conference, the first tentative talks will take place in France, with producers and traders in a strong bargaining position while warehouse owners offer large incentives to put material on warrant.
"Buy from me, don’t buy from me—I don’t care. I’ll just park it in the warehouse," one trader said, predicting that consumers will bump heads with producers and traders this week at the conference, which runs from Sept. 7 through Sept. 9.
"Consumers, I think, are in a huge jam. They’re fighting two forces. They’re fighting the overall economic environment, and they’re fighting the trading companies, banks and warehouses," he said.
While contracts aren’t expected to be signed at the conference, the first tentative talks will take place in France, with producers and traders in a strong bargaining position while warehouse owners offer large incentives to put material on warrant.
"Buy from me, don’t buy from me—I don’t care. I’ll just park it in the warehouse," one trader said, predicting that consumers will bump heads with producers and traders this week at the conference, which runs from Sept. 7 through Sept. 9.
"Consumers, I think, are in a huge jam. They’re fighting two forces. They’re fighting the overall economic environment, and they’re fighting the trading companies, banks and warehouses," he said.
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