While the worldwide primary aluminum industry acknowledges that demand for aluminum products is growing, it is also facing a number of challenges, most notably the issue of over-supply and fluctuating aluminum prices. Certain areas of the world must also face the challenge of high energy costs. In response, many companies are making strategic curtailments at smelters with high operating costs, while simultaneously investing in modernizations, expansions, or new construction in low cost smelters in order to optimize their production chain. The London Metal Exchange (LME) has proposed solutions and changes to warehouse rules in order to address concerns about how existing warehousing policies are affecting capacity levels and premiums for aluminum producers and consumers.
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