Commerzbank maintains global aluminum supply still plentiful

Commodity Online Jan 17, 2011 ---- It is possible that a provider of the new aluminum ETPs （exchange traded products） to be launched in the near term is securing the material needed in anticipation of high demand for these products Commerzbank says. 

Commerzbank suggests global aluminum supply is plentiful and does not support current high prices. The bank notes aluminum stocks in LME warehouses have soared recently with a build of 162 550 tons this week alone taking the total to 4.43 million tons the highest level since September. It is possible that a provider of the new aluminum ETPs （exchange traded products） to be launched in the near term is securing the material needed in anticipation of high demand for these products Commerzbank says.

Another possible reason could be new financial transactions where aluminum serves as the collateral. Meanwhile Japan the world s third largest aluminum consumer has also reported a rise in inventories in December. Also Emirates Aluminium has achieved the target production capacity of its smelter complex in Abu Dhabi of 750 000 tons per year and thus concluded phase I of this project. In a second phase capacity is to be doubled to 1.5 million tons per annum making this the world s largest aluminum smelter. Global supply thus remains plentiful and does not justify the current high price of aluminum Commerzbank concludes.