News Column

NADCA Submits Testimony to Senate Committee on Aluminum Pricing and Supply

January 22, 2014

WHEELING, Ill. , Jan. 22 -- The North American Die Casting Association issued the following news release: On January 15, 2014 , the North American Die Casting Association (NADCA) submitted formal testimony to the Senate Banking Subcommittee on Financial Institutions and Consumer Protection for the hearing titled, "Regulating Financial Holding Companies and Physical Commodities ." "Long lead times, supply shortages, outmoded contract terms, and illogical pricing contribute to instability in the aluminum market. This drives down manufacturing productivity and encourages customers to seek overseas suppliers," said NADCA President Dan Twarog . This is the second Senate hearing investigating ownership of metals warehouses by banks and holding companies and their relationship with the London Metals Exchange (LME). Aluminum is one of the metals central to the warehousing investigations and subject of three lawsuits against holding companies such as Goldman Sachs , which own metals warehouses. In February 2013 , according to data from the LME, the queue to remove metal from warehouses they oversee in Detroit reached 400 days. In June 2013 , some users reported 16-month wait times for aluminum from order to delivery. In May 2013 , NADCA met with representatives of the LME to discuss concerns over wait times, among other issues, with the North American Special Aluminum Alloy Contract (NASAAC). The Association considered withdrawing its support of the NASAAC and remains concerned about terms applied to aluminum contracts. To view the NADCA testimony submitted to the Senate Banking Subcommittee , click here ( http://www.diecasting.org/government/files/metalsmarketjan2014.pdf ). CC AutoTriage8sgm-140123-30VitinMar-4610872


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Targeted News Service


Story Tools