Global energy and commodity group Mercuria is shipping over 30,000 tonnes of aluminium from Port Klang in Malaysia to New Orleans, three market sources have revealed. They added that the trader probably needed the metal for its US customers.
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The shipment is drawn from London Metal Exchange-approved warehouses in Port Klang, where stocks stood at 268,325 tonnes as of 29 October. Inventories have dropped by 74,700 tonnes, or 22 per cent, since late September, a sharp draw that points to tightening spot supply in Asia.
Mercuria’s strategic metals push
The recent aluminium trade is part of Mercuria’s wider strategic pivot into industrial metals, away from its core energy portfolio. News sources had earlier reported the company’s plan to lift sizable aluminium volumes from LME storage in mid-September.
The cargo is travelling on the vessel Astro Denebola, which left Port Klang on October 24 and is expected in New Orleans on December 9, shipping data shows. The Swiss trader has, however, declined to comment on its newest venture.
While most aluminium held in Port Klang originates from India, a portion still comes from Russian producers, and Western buyers have continued to steer clear of Russian metal since the 2022 Ukraine conflict, leading to uneven stock flows and sourcing concerns.
Inventories at the Malaysian hub have dropped by about 22 per cent since September, falling to roughly 268,325 tonnes by late October, reinforcing the sense of tightening global supply. This backdrop comes as US aluminium output keeps declining, forcing the country to import nearly 4 million tons last year to meet demand.
With Mercuria holding more than 90 per cent of LME warrants since May, its influence over near-term metal availability has grown significantly, contributing to rising contract premiums and reshaping global trading dynamics.
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Why has New Orleans been chosen?
The United States remains short of primary aluminium. Its smelting base has eroded for over a decade due to high energy costs and global competition. The country imported more than 3.9 million tonnes of unwrought aluminium and alloys last year, underscoring chronic reliance on overseas supply.
New Orleans is a key entry point for aluminium into the US, feeding automotive, packaging and power grid investment cycles. Demand has been supported by EV adoption, renewable infrastructure spending, and can-sheet growth, even as broader manufacturing softens.
Industry sources note Mercuria has held more than 90 per cent of LME aluminium warrants since May. Such concentration has helped drive a premium on nearby LME contracts over later maturities. In plain terms, the market is paying up for immediate metal.
This shipment could further tighten Asian stocks, while easing US supply stress, a reminder that trade flows are shifting fast amid energy transitions and geopolitical realignments.
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