Aluminium traders in Europe have been switching business to the Italian port of Trieste in the past month, due to high stock levels leading to opportunistic trading.
Market sources told Fastmarkets that the port is ideal for sending material into neighboring Central and Eastern Europe, with trucking costs relatively low. Stock levels in Italy have been rising since the start of the year, with most stock said to be in Trieste. "I hear there is up to 85,000 tonnes in Trieste but at times there is up to 10,000 tonnes leaving a day. It is very quick and people are shifting things around," a trader said. Other traders said there could have been up to as much as 100,000 tonnes in Trieste in April and over 200,000 tonnes in Italy inclusive. One source told Fastmarkets that a large amount of the material sitting in Trieste is not deliverable onto the London Metal Exchange but is still of P1020 specification. "There is a lot of stuff sitting around in Trieste that catches people's eye. There is strong opportunity...