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Aluminum Set to Drop as Financing Accords Unwind, Tiberius Says
Oct. 28, 2011 02:28PM PST
Market NewsBloomberg reported that according to the Tiberius Group, aluminum prices will most likely drop after investors begin to unwind financing deals overshadowing most of London Metal Exchange stockpiles.
Bloomberg reported that according to the Tiberius Group, aluminum prices will most likely drop after investors begin to unwind financing deals overshadowing most of London Metal Exchange stockpiles.
As quoted in the market news:
As much as 80 percent of LME aluminum is locked into financing accords and unavailable to the market, according to Credit Agricole SA. The transactions involve a simultaneous purchase of metal for nearby delivery and a forward sale to take advantage of a contango, when contracts with later delivery dates trade at higher prices than nearer-dated metal.
