US aluminum premiums surpass 10 cents per lb.

Apr 19, 2012 | 04:44 PM | Suzy Waite

Tags  aluminum, Midwest premium, ingot, London Metal Exchange, LME, Suzy Waite

NEW YORK — Midwest spot aluminum premiums have surpassed 10 cents per pound for the first time in almost a decade, with traders reporting decent demand as the London Metal Exchange price of aluminum continues to deflate.

Midwest spot premiums rose to 9.75 to 10.25 cents per pound this week from 9.25 to 9.65 cents previously, with several suppliers achieving 11 cents for immediate deliveries.

If demand stays strong and supply stays tight, sources say the premium has nowhere to go but up.

"Every hour we have a new deal. I just closed one this morning," one trader told AMM.

"We’re pretty tight right now, but we have a few smelters with extra bits and pieces, and the last spot deal we closed was at 10.25 (cents). I’ve heard that a lot of transactions have been over 10 (cents)," one producer said.....

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