Live Updates > Live Update Details
2025-10-30 21:19:58
[30,000 Tons of Aluminum Arrives Across the Ocean! Mercuria's "Stockpiling and Control" Forces a Short Squeeze on the LME] ⑴ Sources revealed on Wednesday that Mercuria, a trader, is shipping 32,000 tons of aluminum from Port Klang, Malaysia, to New Orleans, USA. The shipping schedule shows the vessel "Astro Denebola" departing on October 24th and expected to arrive on December 9th, with a cargo value of approximately $68 million. ⑵ Kpler data indicates this is the largest single shipment of aluminum ingots on the Brazil-US route since May of this year. Mercuria, by controlling over 90% of LME pledged warrants, has continuously pushed up the near-month contract premium over the far-month contract to $56 per ton, a 14-month peak. ⑶ Institutional calculations suggest that if all the December arrivals enter LME registered warehouses, the US Midwest premium may fall from the current 22.5 cents/lb to below 20 cents; however, if the goods are directly picked up by end-users, the risk of a near-month short squeeze will continue until January next year. (4) Aluminum prices surged 2.1% intraday on Wednesday, breaking through $2,200, with trading volume increasing to 2.3 times the 30-day average. Options chain data showed an 18% increase in open interest for call options at $2,200, indicating traders are betting on a further widening of the premium structure. (5) Sources added that Mercuria still holds approximately 70,000 tons of inventory at Port Klang. Its future movement will be a key factor in determining whether the market will renew its charter of two bulk carriers. If it confirms another 20,000 tons of shipment, the LME cash premium could potentially reach $70.
