Alcoa +6% as LME warehouse reforms in doubt after court ruling


Alcoa (AA +6.1%) shares are surging after a U.K. court ruling that for now nixes a planned overhaul of warehouse operations by the London Metal Exchange.

The High Court in London ruled in favor of Russian aluminum producer Rusal, which fears prices of its products will suffer from the LME's efforts, that the consultation process had been unfair.

LME reforms designed to make owners of warehouses in the exchange's global network deliver metal more quickly to consumers had been due to take effect April 1.

ETFs: JJU, FOIL.

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Comments (5)
  • Gumby
    , contributor
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    ok this is interesting and what makes the UK court decide to rule to nix the planned overhaul of warehouse operations? It makes sense as long as producers are senselessly overproducing aluminium and any investor has every right to take possession of the excessive output and store it for better prices in the future . Aluminium prices are too depressed like if you can get a loaf of bread for $1 these days .. You cannot find any ... Aluminium is too valuable to give away for cheap to the greedy industrials..
    28 Mar 2014, 11:40 AM Reply Like
  • Gumby
    , contributor
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    The nix ruling will lead senseless producers to realize that they are not going to help the industrials with underpriced aluminium any longer as most of them will go to hoarders who has every right to take delivery anytime.. This will encourage the industrials to take delivery sooner as well.
    28 Mar 2014, 11:42 AM Reply Like
  • Gumby
    , contributor
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    Once prices for aluminium goes up to the rightful, the hoarders will simply lose interest and start unloading their ingots . At what price? I am sure well above $2 a pound easily. Even so , it is still a bargain!
    28 Mar 2014, 11:44 AM Reply Like
  • Gumby
    , contributor
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    When aluminium prices doubled as supposedly, the world industrial consumers will be hit with an extra $50 billion annually for aluminium against their bottom line. This is not a big hit if you take in account of their total profits annually which was whittled down from questionable high overhead costs being claimed by the industrial consumers themselves. They can easily absorb that extra cost for aluminium or they can seek inferior substitutes for all I care.. Aluminium still has a lot more to prove that it is still a metal of choice over others as well as plastics and composites.. The biggest property of aluminium is its excellent reflectivity which will give a huge boost to our fledging solar energy industry. Concentrated solar power will come once the stubborn utilty hold outs start giving in. Aluminium is so bright for the future that we are blinded by it.. out of greed!
    28 Mar 2014, 11:52 AM Reply Like
  • Gumby
    , contributor
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    there is another wonderful potential for aluminium growth ... Thin aluminium sheets can be fabricated to capture rainfall and funnel it toward storage reservoirs . Aluminium doesnt rust and it lasts forever. In drought prone areas, I am sure that we will start considering installing them to capture rainfall over wide areas and gather a lot of water economically without having to distill seawater . Or we can concentrate sunlight to distill seawater. We can have both. Water is a precious commodity and will become even more so in the future. I dontthink we can use plastic or composite for that purpose.
    28 Mar 2014, 12:02 PM Reply Like
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