Help Desk -
9717405332, 9599714297, 9810335381
Email
Password

Glencore to take 200,000 tonnes of aluminium from ISTIM Port Klang warehouses

Metal News - Published on Wed, 20 Feb 2019

Image Source: The Edge Markets
First Post quoted Malaysia, five sources familiar with the matter as saying that mining giant Glencore has bought 200,000 tonnes of aluminium on the London Metal Exchange and will take delivery of the metal from warehouses owned by ISTIM UK in Port Klang.

Glencore wants the aluminium for delivery to clients but sources said the move was also a direct challenge to ISTIM, which is preventing companies from taking LME warranted metal when needed from its warehouses in Port Klang.

Cancelled aluminium - material earmarked for delivery - in ISTIM's Port Klang warehouses stood at 309,800 tonnes at the end of January, up from 30,000 tonnes at the end of December.

Commodity trader Glencore is a major player in the aluminium market outside China, though it doesn't produce any itself.

Sources said Glencore bought more than 1 million tonnes from Russia's Rusal last year and takes the bulk of production from Century Aluminium, in which Glencore has a more than 40 percent stake. Century's output in 2017 was more than 740,000 tonnes.

Glencore's agreements to buy aluminium from smelters around the world would take its total to about 3 million tonnes, sources say. That is about 10 percent of supply outside China, which accounts for 56 percent of the total at 65 million tonnes.

One aluminium industry source said that "They've (Glencore) cancelled 200,000 tonnes in Port Klang. It's moving out slowly and unlikely to go back into the LME system adding that the impact of Glencore's purchase could be seen in higher physical premiums.”

Source :

Posted By : Rabi Wangkhem on Wed, 20 Feb 2019
Related News from Metal segment