Aluminum Costs Seen Rising More Even After LME Wins Case
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A courtroom victory allowing the London Metal Exchange to ease backlogs of deliveries of aluminum may do little to reduce the cost of the metal used in everything from beer cans to auto parts.
While yesterday’s appeal court ruling in London clears the way for the LME to impose new rules at its warehouses, rising demand for aluminum and output cuts by producers including Alcoa Inc. and United Co. Rusal will still boost costs, according to Harbor Intelligence and BMO Capital Markets. Rusal, which plans to appeal the ruling to the U.K. Supreme Court, yesterday cited a “substantial deficit” in the market.