Rusal Says Aluminum Costs to Stay High as LME Tackles Waits
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United Co. Rusal, the world’s biggest aluminum producer, said elevated premiums are supported by demand and financing deals as the London Metal Exchange tries to ease backlogs in its warehouses that drew complaints from users including MillerCoors LLC.
The LME, which oversees more than 700 warehouses worldwide, proposed rules last month to cut waiting times for withdrawals at some sites. Premiums paid by aluminum users rose in recent months as warehouse operators offered incentives to attract the metal into storage, forcing consumers of the lightweight metal to compete. Analysts from Barclays Plc to Macquarie Group Ltd. and Credit Suisse Group AG have forecast premiums to drop if the LME implements proposed changes.