While aluminium inventories appear high on paper, the market is quite tight

How can a market be burdened with millions of tonnes of excess stock and at the same time be prone to almost continuous tightness? This is the conundrum posed by the aluminium contract traded on the London Metal Exchange. (LME). LME front-month spreads have just passed through another period of extreme turbulence. At its most acute, on February 29, the cost of borrowing metal for the three ...