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Aluminum Glut Revives Financial Crisis-Era Storage Trade

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Wall Street banks and investors are joining commodity traders in stockpiling aluminum, an unconventional way to make money at a time when returns on bonds are historically low.

The pandemic hit the aluminum market hard by triggering a downturn in the auto and aerospace industries, two big buyers of the metal. A surfeit of metal pushed benchmark aluminum prices down 12% this year, to $1,582 a metric ton on the London Metal Exchange.

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