Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
There are signs of a mounting squeeze 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.
Aluminum was little changed in London on Monday.
(With files from Bloomberg)
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