The arrival of investment banks in the aluminium market has triggered a shake-up in the $100bn industry that is forcing producers from Alcoato Rusaland consumers such as BMWand Coca-Colato change the way they do business.
The increasingly dominant role of banks including Goldman Sachs, JPMorganand Deutsche Bank– as well as traders such as Glencore– has prompted a surge to record levels in the premium consumers pay for metal over the benchmark price set at the London Metal Exchange.
Aluminium is the second most widely-used metal after steel, found in everything from aircraft to fizzy drinks cans. For years, the market has been a low-profile business handled by specialist merchants and producers, but in recent years investment banks have become more involved.