Trafigura’s aluminium buying adds to LME supply squeeze as stocks hit 36-year low

Commodity trader Trafigura has built significant long positions in London Metal Exchange (LME) aluminium futures, adding to pressure in a market facing its tightest supply conditions in decades. The purchases are understood to aim to secure physical aluminium, as exchange inventories have fallen to their lowest level since 1990. LME aluminium stocks currently stand at 226,350 tonnes. At the same time, the premium for contracts due for delivery in the near term over those with later delivery dates has reached its highest level in decades. Several large long positions are also in place ahead of the November contract's expiry. Although these positions are not at record levels, they are substantial compared with the metal available in LME warehouses. Explore the production, demand and...