The London Metal Exchange (LME) has reported an 88% jump in total aluminium stocks in its registered warehouses, reaching 903,850 metric tons on Thursday. This is the highest level since January 2022, according to the exchange’s daily data.
The surge in aluminium inventories has been attributed to so-called “rent share deals,” where traders are taking Russian-made aluminium from the warehouses and returning it at a later date to profit from rule changes.
The data shows that on Thursday, 425,575 tons were deposited in Port Klang, Malaysia, while there were reverse net fresh cancellations of 137,050 tons in the same location.
Sources have described the scale of the growth in a single day as “insane,” highlighting the unusual nature of the increase.
The LME declined to comment on the matter.
Following the release of the data, benchmark three-month aluminium prices on the LME dipped slightly before stabilizing. The metal was last unchanged at $2,562 per ton.
The rise in aluminium stocks in LME-registered warehouses reflects the ongoing dynamics in the global aluminium market, with traders taking advantage of rule changes and storage opportunities to potentially profit from their positions.