Squarepoint Capital Acquires $100 Million in Russian Aluminum Amid Market Slump
Squarepoint Capital LLP, a hedge fund, recently made a significant acquisition of over $100 million worth of Russian aluminum from the London Metal Exchange (LME).
The hedge fund obtained the metal from South Korean warehouses and has requested the delivery of 50,000 tons. Most of this aluminum was produced by United Co. Rusal International PJSC before its exchange debut.
Market Slump and Weak Demand
This acquisition comes at a time when the aluminum market is experiencing a period of weak demand, resulting in a stock build-up and a 7.6% price decline on the LME this year. The construction and industrial sectors’ slowdown has primarily contributed to this slump.
Financial firms like Squarepoint Capital are strategically securing stocks in anticipation of potential price surges or profitable financing and warehousing deals amidst the market fragility.
Citigroup’s Similar Strategy
Citigroup Inc is another financial firm adopting a similar strategy, accumulating large quantities of physical aluminum and zinc from the LME. The bank aims to profit from the current low spot prices against projected future high prices. By acquiring these metals at a low cost now, they position themselves to potentially benefit from any future market recovery.
This article was generated to provide you with insightful information on Squarepoint Capital’s acquisition of Russian aluminum. We hope you found it helpful and informative.
