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Coca-Cola takes on Goldman Sachs over aluminum prices
CaptHenway
Posts: 31,559 ✭✭✭✭✭
Not sure if it is relevant here, but an interesting comment upon the way Goldman Sachs operates:
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linky3
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linky3
Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
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Delivery Curbs Spark Aluminium Price Row
From it:
“Warehouses are now able to compete directly with consumers for metal,” says one large aluminium consumer.
While this is well within the LME’s rules, it means a long queue can become entrenched, and the LME contract risks becoming detached from the physical market.
In a statement, Goldman Sachs said that “warehouse companies, such as Metro, serve an important role in promoting the reliability and liquidity of markets”, adding that market dynamics “reflect many variables”.
The debate has come to a head after a day-long meeting of the LME board last Thursday that ended in no agreement on new regulations for the largest warehouses, concluding only that the load-out rate for these warehouses would be raised to at least 3,000 tonnes a day.
A major point of debate, according to people familiar with the discussions, was the feasibility of loading out metal more rapidly than 3,000 tonnes per day.
Since each LME contract refers to a specific bundle of metal, it is a time consuming activity to find and load out large quantities of metal, traders say. It takes about 80 trucks to meet the current requirement of 1,500 tonnes a day.
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Our legal dept has TONS of money and LOVES to spend it.
Has Goldman Sachs ever got pub for doing 'good' things....I can't seem to remember when----. Goldman seems to be the master at inserting themselves into other companies business---w/o that company expressly issuing an invite.
Why do large consumers of aluminum or any metal/commodity put themselves in a position whereby another middleman can insert themselves in the production process?