Aluminum market squeeze intensifies amid LME delays and rising costs

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in the aluminum market with contracts for October delivery on the London Metal Exchange trading at a higher premium over November.

Traders caught in a lengthy queue to withdraw aluminum from the LME’s system are under pressure because they need to roll over hedging positions as they wait, while warehouse owner Istim Metals LLC has controversially raised a key administrative fee that makes it much more costly to re-register the lightweight metal if prices turn against them.

The market has also been eyeing a large long position in October contracts held by Trafigura Group — the same trader that originally deposited the mountain of aluminum in Istim’s warehouses.Copper demand for electric vehicles is intact, trader IXM saysIron ore rose — adding to two big weekly gains — on speculation China’s top economic planner will unveil more stimulus measures on Tuesday.

 

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