Trafigura key player in LME aluminum squeeze

GreyOak summary

Trafigura Group built a significant long position in LME aluminum, contributing to a historic supply squeeze as inventories plunged to 1990 lows. The move drove the market into steep backwardation with prompt contracts trading far above futures. Chinese inventories also fell sharply, creating an arbitrage opportunity for traders to buy LME metal for delivery in China.