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Steel & Metal
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Mercuria Moves to Withdraw Nearly 100,000 t of Aluminium From LME Warehouses Amid Backwardation

Commodities trader Mercuria has indicated plans to take almost 100,000 metric tons of aluminium out of London Metal Exchange (LME) registered warehouses in Port Klang, Malaysia, according to market sources cited on September 16, 2025. LME data show Mercuria has held a dominant position in on‑warrant aluminium since May, exceeding 90% at times, with 426,000 tons of available metal as of September 4. The planned withdrawals were signaled by cancellations of warrants on September 5 and 8. The move is notable because the LME aluminium market is currently in backwardation, with cash trading around $5 per ton over three‑month, a structure that typically discourages taking metal off‑exchange. The LME said it has arrangements to guard against undue influence from large positions, though it made no direct comment on the trader’s holdings. Analysts in a Reuters quarterly survey expect a small global primary aluminium surplus of about 200,000 tons in 2025 and 281,500 tons in 2026, with total primary supply estimated at roughly 74 million tons this year. Mercuria declined to comment on the reported withdrawals.

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