Mercuria ships LME aluminium from Malaysia to New Orleans

By Pratima Desai

LONDON (Reuters) -Mercuria is shipping more than 30,000 metric tons of aluminium from Port Klang in Malaysia to New Orleans, three sources familiar with the matter said, adding that the commodity trader probably needed the metal for its U.S. customers.

The metal is coming from London Metal Exchange approved warehouses in Port Klang, the sources said, where aluminium stocks at 268,325 metric tons as of October 29 are down 74,700 tons or 22% since September 22.

Mercuria's shipment of aluminium to the United States is part of a wider strategic push into industrial metals, as the trader seeks to diversify beyond its traditional energy business, industry sources said.

Reuters reported Mercuria's plans to take large amounts of aluminium from LME storage on September 16.

Mercuria is sending the aluminium it has taken from LME warehouses in Port Klang to the United States on a vessel named Astro Denebola, the sources familiar with the matter said.

Swiss-based Mercuria declined to comment.

According to data provider Kpler, the Astro Denebola carrying 32,000 tons of aluminium left Port Klang on October 24 and is due to arrive in New Orleans on December 9.

Industry sources said most of the aluminium on warrant - a title document conferring ownership - stored in the LME's warehouses in Port Klang is of Indian origin.

Some of the metal stored in the exchange's warehouses in Port Klang was produced in Russia, the industry sources said. Western consumers have shunned Russian aluminium since Russia's invasion of Ukraine in February 2022.

With its local primary aluminium industry in decline for years, the U.S. relies on imports of large amounts of unwrought aluminium and alloys - more than 3.9 million tons last year, according to U.S. government data.

Aluminium is a key material for the power, construction and packaging industries.

Mercuria has for much of the time since May held more than 90% of LME aluminium warrants - title documents conferring ownership, industry sources said.

This holding, they said, is behind the premium for nearby aluminium contracts on the LME over those with longer maturities.

The LME does not publish names of companies with large holdings of its metal warrants.

(Reporting by Pratima Desai; editing by Jane Merriman)