UBM - Aluminum Price Is Pulled This Way And That On Rising Trader Interest Supply Glut
By Stuart Burns
Aluminum prices have been on an upward trend the last week or two, currently holding comfortably above $1,500 per ton for spot cash after months in the $1,400s.
The market, though, is undergoing convulsions.
The spot price is being driven up by physical demand for metal from traders exploiting a price arbitrage between the LME and China's SHFE price. In addition, the price is also receiving support from physical demand from the stock and finance trade looking to buy spot, sell long-dated forward and taking the profit between the two