Glencore Will Extract 200,000 Tons Of Aluminum From ISTIM's Port Klang Warehouse

- Feb 20, 2019-

On February 18th, the source said that mining giant Jianeng could buy 200,000 tons of aluminum from the LME market and will pick up the goods at the warehouse of Klang Port in ISTIM UK. According to sources, Glencore will pose a direct challenge to ISTIM, which is preventing companies from extracting LME registered metals from the Klang warehouse. As of the end of January, the number of aluminum warehouse receipts in the Klang warehouse was 309,800 tons, much higher than the 30,000 tons at the end of December. Commodity trader Glencore is a major player in the aluminum market except for China, but it does not produce aluminum itself. According to sources, Glencore bought more than 1 million tons of aluminum from Rusal last year and acquired most of Century Aluminium's production. Glencore has a 40% stake in Century Aluminum, which produced more than 740,000 tons of aluminum in 2017. Glencore has signed an agreement to purchase approximately 3 million tons of aluminum from global refineries, accounting for 10% of supply outside of China. An aluminum source said that Glencore can extract 200,000 tons of aluminum from the Klang warehouse, and the action is slow and the aluminum will not return to the LME system. He said that Glencore's purchase of aluminum is expected to push up the spot premium. Glencore signed an agreement with Rusal in 2012 to buy 14.5 million tons of aluminum from Rusal in seven years. A trader said: "The agreement expired last year. Glencore will now purchase aluminum from RUSAL on a quarterly basis."