Académique Documents
Professionnel Documents
Culture Documents
Confidential Draft
January 2014
Bank control of physical commodities and related businesses raises conflict of
interest, safety and soundness, and market concentration concerns, including
how that activity could affect commodity prices or lead banks to disadvantage
their customers or competitors.
- Senator Carl Levin
Disclaimer
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info@sunesiscapital.com
Executive Summary
Key Takeaways
LME Price
Midwest Premium
1. The majority of metal flows . . . via long term (generally annual) supply arrangements. Typically these arrangements will be referenced to average LME prices plus an
agreed premium. LME, Public Report of the LME Warehousing Consultation, November 2013, p.36.
2. Noranda. Form 10-K. 20 February 2013. p.6.
3. LME, Trading times and dates. http://www.lme.com/en-gb/trading/times-and-dates/
4. LME, Ring dealing members category 1. http://www.lme.com/trading/membership/category-1-ring-dealing/
5. Platts sets benchmark prices in various markets, including energy and metals. Platts, Methodology and Specifications Guide: Metals, p.2.
4
http://www.platts.com/IM.Platts.Content/methodologyreferences/methodologyspecs/metals.pdf
Simon Falush and Douwe Miedema, U.S. Regulators In Talks With EU on Energy Price Probe, Chicago Tribune (Reuters), September 6, 2013.
Memorandum of Points and Authorities, CFTC v. McGraw Hill, 07 Civ. 00169 (RMU), April 30, 2007.
Staff Reporter, McGraw-Hills Platts Receives Subpoena About Energy Prices, Wall Street Journal, October 14, 2002.
The Problem
Industrial Players Claim Inflated Aluminum Prices Are Caused by
Banks and Traders Warehousing of Metal
The premium structure, as we see it today, is a structure that is being driven largely by the
financing structure that we talked about that's in place today. Simply a fact that there is a
large sum of capital available in the world looking to purchase aluminum and stick it on the
ground and it's competing with the physical demand which is leading to the premiums being
driven up . . . .1
- Tim Reyes, Alcoas President of Materials Management
An Aluminum Surplus
In 2009, during the economic crisis, aluminum producers were making
more aluminum than they could sell to industrial consumers.
But they found unexpected demand for the metal from speculative
financial players trading on the London Metal Exchange, a global
market for aluminum. So they put the aluminum into warehouses and
sold it on the Exchange.
2009
Aluminum
Producers
Industrial
Users
Warehouse
Speculative
Demand
In 2009 the aluminum market had a surplus of over 2.3 million metric tons. (Loyd OCarroll, Quarterly Aluminum Outlook, The OCarroll Aluminum Bulletin.
Davenport & Company. June 27, 2013). See also Jack Farchy. Metals Warehouses: Storage Stacks Up For Traders, Financial Times, July 17, 2012.
2010
Aluminum
Producers
Industrial
Users
Warehouse
1. Jack Farchy, Metals Warehouses: Storage Stacks up for Traders, Financial Times, July 17, 2012.
2. Pratima Desai, Goldmans New Money Machine: Warehouses, Reuters, July 28, 2011.
10
1. LME, Public Report of the LME Warehousing Consultation, November 2013, p.12.
11
Two Questions
Why did banks and traders suddenly buy
LME warehouses in 2010?
12
13
14
LME Warehouses
Aluminum traded on the LME (e.g. delivered at the end of an
LME futures contract) has to be kept somewhere.
15
The Players
Buyers and sellers generally fall into one of two categories: Hedgers and
Speculators. Hedgers, typically industrial players, are aluminum buyers or
sellers, and they trade futures to protect themselves against price fluctuations
that could hurt business. They seek to lock in future prices to eliminate risk.
Speculators, typically financial players, are not net buyers or sellers; instead they
are betting on future prices going up or down and will seek to turn a profit.
Either party may sell their position to a third party in order to exit the contract.
16
Risk
Aluminum Contango
Buyers who want aluminum in the future would prefer to have sellers store it
until delivery. This generally makes it more expensive to order for future delivery
than to order for immediate delivery, and creates a contango.
Price to take
home today
1. The term contango is sometimes used to mean different, but related, things. For an excellent explanation, see Khan Academys videos starting at
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/forward-futures-contracts/v/contango
Data from LME (www.lme.com). The curve shown is for September 22, 2013. Historical data on LME prices before 2013 is not freely available.
18
Contango Arbitrage
An arbitrage is possible: a trader simultaneously buys aluminum at the lower spot
price and sells it for delivery in the future at the higher futures price. The
difference, or spread, in prices creates revenue.
Buy at the low
spot price
Revenue
As long as the traders expenses to hold the metal during the life of the futures
contract are less than the spot-future spread, the result is a true arbitrage:
Riskless Profit
19
20
Expenses with
Commercial
Borrowing
Storage
55%
Profit
1%
Storage
55%
Profit
24%
Financing
36%
Financing
13%
Insurance
8%
Insurance
8%
Storage is assumed to be 50% of the published LME rate. At the full storage rate, the trade is not profitable. See Lloyd OCarroll, Stock Financing Presentation at CRU North
American Trends Conference 2013, March 12, 2013. OCarroll assumes a $148/mt contango, LIBOR of .81%, commercial borrowing of 2.31%, insurance of $12/mt, half-price
storage costs of $82/mt, and self storage costs of $33/mt.
22
Storage
55%
Profit
24%
Profit
56%
Financing
13%
Insurance
8%
Financing
13%
Storage
22%
Data from Lloyd OCarroll, Stock Financing Presentation at CRU North American Trends Conference 2013, March 12, 2013.
Insurance
8%
23
Purchase of Warehouses
This is just what they didall in early/mid 2010.
1. Javier Blas, Goldman and JP Morgan enter metal warehousing, Financial Times, March 3, 2010.
2. Jesse Riseborough, Glencore To Buy Pacorinis Metal Warehousing Business, Bloomberg, August 2, 2010.
3. Pratima Desai and Veronica Brown, Trafigura Buys Metals Warehousing Company NEMS Ltd. Reuters, March 1, 2010.
24
29
1. Lloyd OCarroll, Metals: Proposed LME Rule Change No Obstacle to Our Bullish Physical Premiums Outlook, Davenport. July 22, 2013.
2. Ian Bremmer, Finance Deals Put Growing Mountains of Metal Out of Reach, Reuters, February 21, 2013.
25
3. LME Active Listed Warehouses, September 18, 2013. http://www.lme.com/~/media/Files/Warehousing/Approved%20warehouses/LME%20listed%20warehouses.pdf
54
11
Other
1. LME Active Listed Warehouses, October 16, 2013 (see previous slide).
26
But
$$
$$
Warehouse
Aluminum Storage
J. Aron
Goldmans
commodities sub.
We think that it is no accident that the bulk of warehousing space is now owned by banks or
commodity traders who conduct stock financing both for their own account and for clients.
(Stock financing at a conglomerate such as Goldman or Glencore must be transacted at
subsidiary other than the warehouse, since warehouses cannot own metal under LME rules.)2
But because The Fed does not require disclosure by BHCs of ownership of physical
commodities, we cannot know the full spectrum of Goldmans trading activities.
1.
2.
http://www.goldmansachs.com/media-relations/in-the-news/current/goldman-sachs-physical-commodities-7-31-13.html
Lloyd OCarroll, Metals: Proposed LME Rule Change No Obstacle to Our Bullish Physical Premiums Outlook, Davenport, July 22, 2013.
27
Profit
1%
Storage
55%
Profit
24%
Storage
55%
Financing
36%
Financing
13%
Insurance
8%
Insurance
8%
Profit
56%
Financing
13%
Storage
22%
Insurance
8%
28
Off Warrant: Once the metal is removed from the LME system, it is no longer warranted
and falls into so-called dark inventory. We dont know how much dark inventory exists.
29
On Warrant
On
Warrant
Dark
Inventory
1.
Isabella Kaminska, The Curious Case of Un-Cancelled Warrants, FT Alphaville, June 2, 2011.
Dark Inventory
Only the
warehouse/metal owner
knows where this dark
inventory metal is.
30
1.
2.
Stuart Burns, When Cancelled Copper Warrants Arent What They Seem, MetalMiner, March 18, 2010.
John Dizard, FT: Copper Market Looking Tarnished, Financial Times, March 14, 2010.
31
32
Warehouse Queues
Instead, they jacked up rents on metal on its way out, and then
delayed delivery of that metal. They delivered out only at the
slowest pace allowed by the LME: 3,000 mt/day.1
According to The New York Times, Metro would even deliver metal
from one warehouse to another, in order to game the system, and
keep the queues long and the high rents rolling in.2
Its like giving your keys to the valet attendant, but then watching
him shuffle your car from line to line instead of driving it to you.
34
Warehouse Queues
The aluminum loadout wait time has increased about tenfold since Goldman bought Metro.1
1. David Kocieniewski, A Shuffle of Aluminum, But to Banks, Pure Gold, New York Times, July 20, 2013.
35
Warehouse Queues
Metro claims the queues are due to the difficulty in accessing metal
from within the warehouses.
1. Anthony Stuart, quoted in: David Kocieniewski, A Shuffle of Aluminum, But to Banks, Pure Gold, New York Times, July 20, 2013.
36
Aluminum Producers
Warehouse
LME: [I]t has become common practice for warehouse operators to offer incentives to metal
owners to attract load-in of metals, with such incentives being funded by the charges which will be
paid by the party subsequently acquiring that warrant on the LME.2 In other words, incentives are
funded by higher premiums.
1.
2.
Anne Riley, Aluminum Spot Premiums Reach Record Highs, American Metal Market, April 15, 2011.
LME, Public Report of the LME Warehousing Consultation, November 2013, p. 32.
37
Incentives
This creates a cycle.
Incentives
More
Speculation
& Storage
Speculation
& Storage
Slow
Delivery
More
Rent
Collected
More
Incentives
Paid
Slower
Delivery
Even
More
Rent
Collected
Even
More
Incentives
Paid
Even
More
Speculation
& Storage
etc
38
1.
39
1. Maytaal Angel and Melanie Burton, Glencore Profits From Metals Backlog in Dutch Port, Reuters Business, April 27, 2012.
London-Based Trader
40
The Results
Macquarie Research estimates total current aluminium stock
to be 11.9 million tonnes (October 2013 Commodities
Research). This includes both LME and off exchange metal.
The LME currently has 5.4 million tonnes of aluminium onwarrant, which implies that an estimated 6.5 million tonnes of
aluminium is being held off warrant. 1 For comparison
purposes, 2011 primary aluminum production in the U.S. was
2 million tonnes and demand was 3.5 million tonnes.
Aluminum inventories tracked by the LME have risen to their
highest level since September 2012, meaning even more
financing transactions are taking place.2
1. LME, Public Report of the LME Warehousing Consultation, November 2013, p.12.
2. Agnieszka Troszkiewicz, LME Aluminum Stocks Jump Most in a Year as Financing Continues, Bloomberg, October 17, 2013.
41
The Results
Inventories in Vlissingen alone (where Glencore, through
Pacorini, owns 54 out of 56 LME warehouses) are at their
highest level since at least January 1999.
As much as 80% of stockpiled aluminum may be tied to financing
transactions and is thus unavailable to consumers.
The October spread between the LME spot price and three
month futures price is $47. The spread was $50.65 in August, the
widest since November 2008, the height of the financial crisis.
All data from: Agnieszka Troszkiewicz, LME Aluminum Stocks Jump Most in a Year as Financing Continues, Bloomberg, October 17, 2013.
42
1. Tatyana Shumsky and Andrea Hotter, Wall Street Gets Eyed in Metal Squeeze, Wall Street Journal, June 17, 2011.
2. Pratima Desai, Goldmans New Money Machine: Warehouses, Reuters, July 28, 2011.
43
Could this have had anything to do with the fact that the
LME gets ~1% of the rents from storage? 3
1. Jack Farchy, LME Rule Disappoints Aluminum Consumers, Financial Times, July 15, 2011.
2. Jack Farchy, Delivery Curbs Spark Aluminum Price Row, Financial Times, June 21, 2011.
3. Pratima Desai, Goldmans New Money Machine: Warehouses, Reuters, July 28, 2011.
44
10.8% stake
9.53% stake
In 2012, the LME was sold to Hong Kong Exchanges and Clearing. But before then, the
LME was owned by 92 banks, trading firms, and others.1
1. Andrea Hotter, Table of Key LME Shareholders Eligible To Vote On Sale, DowJones Newswire, June 15, 2012.
Jack Farchy, End Of An Era As LME Is Sold For 1.4bn, Financial Times, July 25, 2012.
Jack Farchy, The Challenge Of Selling The LME, Financial Times, March 9, 2012.
45
J. Aron
Traded
13
46
48
Aluminum Smelting
Bauxite
Aluminum, a chemical element, is the most abundant metal on earth. Because it is highly reactive, it is
rarely found in its pure form. Instead, nearly all metallic aluminum is taken from an ore called bauxite.
Alumina
After bauxite is mined, its processed to extract alumina (a/k/a aluminum oxide, or AlO).
Aluminum
Alumina must then be reduced to elemental aluminum by removing the oxygen from the compound. This
requires an energy-intense smelting process. First, alumina is dissolved into another compound at about
1000F; then a strong electrical current in the presence of carbon produces a chemical reaction that yields
pure molten aluminum and carbon dioxide. Massive amounts of electricity are needed for this process, as
the electrical current both maintains the high temperature and drives the chemical reaction. In a single
smelting cell, hundreds of thousands of amps may be needed.
49
Industrial Fabricators
Fabricators buy the aluminum
or alloy and shape it into
somethinga beer can,
aerospace sheeting,
extrusions, aluminum foil, an
Altoids box, etc
Industrial Consumers
Consumers buy the
fabricated aluminum to use
in their final products, like
aircraft, cars, soft drinks,
fences, appliances, and the
list goes on and on...
51
Industrial Fabricators
But most aluminum contracts do not quote just a simple Midwest Transaction Price.
Instead, they break the price down into two more complex components . . .
1. Noranda, 10K for Year Ended 12/31/12, February 28, 2013, p.6.
52
LME Price
The LME price is determined by
trading, mostly by hedgers and
investors, on the LME. It is the
de facto international spot price,
referenced in many deals.2
Midwest Premium
The regional Midwest Premium
is the additional cost that a
consumer pays a producer to
deliver the aluminum, sort of
like shipping and handling.3
Notably, both of these component prices move over time, meaning the Midwest
Transaction Price is a floating price during the course of the long term contract.
1. The majority of metal flows . . . via long term (generally annual) supply arrangements. Typically these arrangements will be referenced to average LME prices plus
an agreed premium. LME, Public Report of the LME Warehousing Consultation, November 2013, p.36.
2. Noranda, 10K for Year Ended 12/31/12, February 28, 2013, p.6.
53
3. Platts, Methodology and Specifications Guide: Metals, p.2. Web: http://www.platts.com/IM.Platts.Content/methodologyreferences/methodologyspecs/metals.pdf
54
Platts survey
of some spot
transactions
Floating
Midwest
Premium
Zero transparency;
based on selfreporting
Millions of tonnes of
industrial metal is
pegged to this floating
premium and affected
by the Platts survey
55
Premium
LME
1.
2.
Lloyd OCarroll, Stock Financing Presentation at CRU North American Trends Conference 2013, March 12, 2013.
Matt Day, Alcoa and Rusal Are Beneficiaries of Warehouse Logjam, TheWall Street Journal, October 23, 2013.
56
Simon Falush and Douwe Miedema, U.S. Regulators In Talks With EU on Energy Price Probe, Chicago Tribune (Reuters), September 6, 2013.
McDonnell v. Royal Dutch Shell PLC, 13 Civ. 7089 (S.D.N.Y., October 3, 2013) p.4.
Memorandum of Points and Authorities, CFTC v. McGraw Hill, 07 Civ. 00169 (RMU), April 30, 2007.
Staff Reporter, McGraw-Hills Platts Receives Subpoena About Energy Prices, Wall Street Journal, October 14, 2002.
57
1. LME, Public Report of the LME Warehousing Consultation, November 2013, p. 40.
58
Aluminum Producers
Industrial Fabricators
Industrial Consumers
$$
$$$
You
Producers charge fabricators for the raw metal. This is LME + Midwest Premium.
Fabricators charge industrial consumers for shaping and constructing the metal. Typically, fabricators use
pass-through contracts, meaning increases and decreases in the price of aluminum are passed directly to
the industrial consumer. (Without pass-through contracts, fabricators could not stay in business.)
Higher and lower costs of aluminum are either absorbed by the industrial consumer, or passed along to the
retail consumerYOU.
59
Industrial Fabricators
Industrial Consumers
Warehouse
Warehouse
Aluminum Producers
$
Industrial Fabricators
Industrial Consumers
61
62
63
275
MW Premium ($/mt)
255
235
4/3/2013, 259.04285
215
195
175
155
135
115
1/6/2010, 125.66334
95
7/1/2013
5/1/2013
3/1/2013
1/1/2013
11/1/2012
9/1/2012
7/1/2012
5/1/2012
3/1/2012
1/1/2012
11/1/2011
9/1/2011
7/1/2011
5/1/2011
3/1/2011
1/1/2011
11/1/2010
9/1/2010
7/1/2010
5/1/2010
3/1/2010
1/1/2010
11/1/2009
9/1/2009
7/1/2009
5/1/2009
3/1/2009
1/1/2009
75
64
1. Tim Reyes, Alcoa President of Materials Management, Alcoa 2012 Investor Day, Reuters Transcript, November 7, 2012, p. 18.
65
There are still a lot of [industrial] customers that are short [of
aluminum]. I think they got lulled into sleep thinking theres a lot
of metal around, and theres not.2
- Aluminum Trader, quoted in American Metal Market
66
$$
Price pressure
Industrial
Fabricators
Aluminum
Producers
Warehouse
67
1. Anne Riley, Aluminum Spot Premiums Reach Record Highs, American Metal Market, April 15, 2011.
68
$$
Price pressure
Industrial
Fabricators
Aluminum
Producers
$
Warehouse
1.
Financial
Buyers
Rent increased from $20/mt in April 2010 to $165/mt in July 2013. Lloyd OCarroll, Metals: Proposed LME Rule Change No Obstacle to Our Bullish Physical
Premiums Outlook, Davenport, July 22, 2013.
69
1. LME, Public Report of the LME Warehousing Consultation, November 2013, p.6.
2. Jethro Wookey, Goldman Sachs Swap Offer No benefit to Novelis, Metal Bulletin, August 2, 2013.
70
1. Andrea Hotter, Guide to Warehousing as LME Board to Discuss Potential Changes, Dow Jones Newswire, June 16, 2011.
71
Price pressure
Aluminum
Producers
Industrial
Fabricators
$$$
Industrial
Consumers
$$$$
You
$
Warehouse
Financial
Buyers
72
2.
3.
1. The significance of rents is that the markets contango structure is impacted by the cost of storage in general, the greater the cost of storage, the more steep the
73
gradient of the forward curve. LME, Public Report of the LME Warehousing Consultation, November 2013, p.6.
74
According to The Wall Street Journal, in the 11 quarters starting with the first quarter of
2011, Alcoa made $649 million more on premiums than it would have made had
premiums stayed at their average (6 cents/lb) from previous years. Rusal made an extra
$790 million. Thats about a 60% increase in premium revenue for each company.
Premium revenue at Alcoa, Rusal, and Rio Tinto totaled $5.6 billion in 2011 and 2012.
Thats nearly double what they made in the comparable period through the first half of
2010.2
1. LME, Public Report of the LME Warehousing Consultation, November 2013, p.27.
2. Matt Day, Alcoa and Rusal Are Beneficiaries of Warehouse Logjam, Wall Street Journal, October 23, 2013.
75
76
Scott Bull
Pace Industries
Tristan Busch
Andrew Caplan
Glencore International AG
Steve Hodgson
Nick Madden
Novelis Inc.
Jean Marchand
Nicholas Martin
Michael Parker
Alcoa of Australia
Frans Pettinga
Wolfgang Zwingenberger
Marcos Castro
http://www.lme.com/about-us/corporate-structure/committees/aluminium-committee/
77
Shon Loth
BTG Pactual
Charles Bucknall
Mike Dudley
Graham Hawkins
Chris Jonker
C. Steinweg-Handelsveem BV
David Lilley
Simon Maddocks
Thorleif Schjelderup
Hydro Aluminium
Brian Smith
Scotiabank
Pacorini Metals AG
Chris Wibbelman
Marcos Castro
http://www.lme.com/about-us/corporate-structure/committees/warehousing-committee/
78
Industrial consumers on the other end of pass-through contracts must either eat the
higher premiums, or pass on the higher costs to their customersthe public.
79
81
82
Federal Funding
Bank Holding Companies access to the discount window means for the past 5
years they could borrow from The Fed for close to nothing. This safety net in
turns means their cost of borrowing from other banks is less than 1%.
(Today a 30 year mortgage costs over 4% interest.)
Metal is typically financed for one year at a rate just above LIBOR. In this cycle,
short-term interest rates (including one-year rates) have been extremely low,
approximately zero. In other words, there is almost no cost to finance metal. 1
- Lloyd OCarroll, Aluminum Industry Expert
1.
2.
Lloyd OCarroll, Metals: Stock Financing the Major New Factor Affecting This Aluminum Cycle, Davenport, June 25, 2012.
Lloyd OCarroll, Metals: Proposed LME Rule Change No Obstacle to Our Bullish Physical Premiums Outlook, Davenport, July 22, 2013.
83
Regulation
Since 1999, Banks have been permitted to engage in commercial
business under very wide and porous limits.
1. Testimony of Saule Omarova, Hearing on: Examining Financial Holding Companies: Should Banks Control Power Plants, Warehouses, and Oil Refinieries, Senate Committee
on Banking, Housing, and Urban AffairsSubcommittee on Financial Institutions and Consumer Protection, July 23, 2013, p. 5.
84
1. Press Release, At Senate Banking Hearing, Brown Presses Regulators on Bank Holding Companies Controlling Price and Supply of Physical Commodities, Effect on
Consumers and Manufacturers, July 23, 2013. Available at http://www.brown.senate.gov.
85
Opacity
But its very hard to understand all the repercussions.
[T]here is no meaningful public disclosure of banking organizations assets
and activities related to physical commodities and energy 1
- Saule Omarova, Associate Professor, UNC
[T]hese institutions are so complex, dense, and opaque that they are
impossible to fully understand . . . . Their physical commodities activities are
not comprehensively reported they are buried deep within various
subsidiaries . . . . Their specific activities are not subject to transparency and
are often buried in arcane regulatory filings. 2
- Senator Sherrod Brown
1. Michael Crittenden, Fed Misses Perceived Deadline on Commodity Ownership Review, The Wall Street Journal, September 23, 2013.
87
Investigations
However, some in government have taken notice.
In August 2013, the Commodity Futures Trading Commission subpoenaed a
number of metals warehousing firms, including Goldman Sachs/Metro, JP
Morgan/Henry Bath, and Glencore/Pacorini. The subpoenas sought all
sorts of information, including anything that relates to moving metal
from one warehouse to another within the same company . . . and
procedures for loading out.1
Inside sources have also reported that the Department of Justice has
begun a preliminary probe into warehousing, including visiting at least one
warehousing firm in the U.S.1
88
1. Christian Berthelsen, Jamila Trindle, Dan Fitzpatrick, Senate Panel Opens Probe of Banks Commodities Businesses, The Wall Street Journal, July 30, 2013.
89
LME, Public Report of the LME Warehousing Consultation, November 2013, p.76.
90
91
If successful, a class of plaintiffs could receive treble damages and fees. This means
that a large potential class could receive from defendants 3x the total extra premiums
paid on metal purchased over the course of a few years.
Complication of An Antitrust Suit: Indirect Purchasing
A collusion/monopolization claim against Metro or Pacorini may very well succeed for
plaintiffs who stored aluminum in the warehouses and who allege that rents violated
antitrust laws. But this isnt a very big case. A big class suit would include all buyers
of aluminum, whether from a warehouse or not. But Metro/Goldman and
Pacorini/Glencore never sold aluminum.
To avoid such a complication, plaintiffs should emphasize that defendants used their
collusive/monopolistic power to constrict supply, whether owners of the metal or
not. Therefore, the complex detailing as to how premiums increased can wait for the
damages phase of the case (if it gets there).
92
LME Buyers: Do financial players, who were forced into an allegedly monopolized,
manipulated LME/warehouse system, have a good antitrust claim? Because they had
to buy metal on the LME, they found themselves at the mercy of the LME warehouses,
who could use their outsized market power to force delays and high rents.
What about claims against the producers?: Producers benefit from increased rents
and warehouse delays, because of the higher premiums and constricted supply; thats
why theyre very content with the status quo. But why has the market not found a
workaround for the inefficient and bizarre pricing methodology behind aluminum?
Why are producers often charging the same inflated price for metal (LME + Premium),
and not competing with each other? Is this just a version of conscious parallelism, or is
93
something more going on?