FXWire Pro Headline | July 26 2013 3:30 EDT
Quotes from Standard Chartered:
-LME aluminium prices have slumped in recent weeks, but we see limited downside from here. We expect prices to grind higher over the next few years as a result of a rising cost base, demand growth and moderate supply growth. However, falling premia are likely to keep the industry under pressure.
-The market faces a substantial threat from the overhang of LME stock built up in the most recent recession. The LME could potentially become the world's second-largest supplier after China if banks lose their appetite for financing stock and forward curves flatten. This represents a threat to high-cost producers in the industry.