Financing deals, deficit to buttress physical aluminium prices
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LONDON (Reuters) - Aluminium tied up in financing deals and collateral for loans, shortages and inventory draws will sustain prices in the physical market even as funds expecting sluggish demand sell derivatives.Financing deals involve buying aluminium now and selling it forward for a higher price and profit after storage and interest costs have been deducted. These deals are often on a monthly basis and rolled over, but traders say some recent deals go out to December 2019 and March..