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US: Citi slams aluminum hoarding claims, points to lawsuit flaws

By  |  August 19, 2013

Citigroup slammed the recent onslaught of price-fixing allegations against owners of warehouses that store aluminum including JP Morgan Chase, Goldman Sachs and Glencore Xstrata, pointing to what it saw as flawed claims. The firm’s director of metals research and strategy David Wilson said Monday that the use of the term “hoarding” is inaccurate because metal is not owned by a single entity and thus suggests a major collusive conspiracy between metal warehouse owners. Further, said Wilson, “aluminum is not scare globally.” Wilson also said the evidence to suggest aluminum prices have been inflated is scarce. So far, four class actions have been filed against warehouse company owners in the US, accusing the firms of monopolistic and anticompetitive business practices. Citigroup is not connected to any such lawsuits.

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