Goldman Sachs, London Metal Exchange dispute beer maker on aluminium price

LONDON: Goldman Sachs Group, the owner of the one of the biggest US aluminium-warehouse networks, and the London Metal Exchange say commodity prices fell in recent years, countering claims of rising costs by beverage companies.

“Delivered aluminum prices are nearly 40% lower than they were in 2006,” Goldman said on Tuesday in a statement, and the LME said there is no “reported shortage” of the metal.

MillerCoors, a SABMiller and Molson Coors Brewing venture, said at a Senate subcommittee hearing on Tuesday that unfair LME rules used by Goldman, JPMorgan Chase and other warehouse owners boost costs and delay shipments. Senator Sherrod Brown, the committee chairman, plans to ask the Federal Reserve to explain why it allows banks to control raw material supplies while trading in commodity markets.

Tim Weiner, a global risk manager at Chicago-based MillerCoors, said that Coca-Cola and Dr Pepper Snapple Group share his concerns, along with manufacturers Novelis and Ball.