LONDON: Aluminium inventories in warehouses registered by the London Metal Exchange (LME) rose to the highest in more than 2-1/2 years, having more than doubled in less than a week, data showed on Tuesday.
Last week, commodity trader Trafigura delivered 424,000 metric tons of aluminium to LME warehouses for lucrative financial deals, three sources familiar with the matter told Reuters.
On Tuesday, data showed that aluminium stocks jumped by a further 131,075 tons to 1,033,625, their highest level since October 2021 and a gain of 115% since last week.
The fresh inflows moved into storage facilities in Port Klang in Malaysia, the same location where last week’s inventories arrived.
It was unclear which company was behind the latest inflows. Sources had told Reuters that Trafigura was arranging so-called rent deals which allow LME-approved warehouses to share fees with companies that deliver metal to them.
Companies that deliver aluminium for rent deals do not have to retain ownership of the metal, but can get a share of the rent, paid by the new owners, for as long as the metal stays in that warehouse.
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