Aluminum premiums graze new high

May 04, 2012 | 03:39 PM | Suzy Waite

Tags  aluminum, Midwest spot premiums, AACOA, Lippert, Norsk Hydro, London Metal Exchange, LME, contango warehouses

NEW YORK — Midwest spot market aluminum premiums grazed a record high this past week as supply remained tight and traders continued to finance metal in warehouses.

Midwest spot premiums rose to a wider 9.75- to 10.5-cent-per-pound range from 9.75 to 10.25 cents a week earlier, with a number of traders reporting sales as high as 11 cents per pound for immediate deliveries.

"I definitely wouldn’t sell under 10 (cents) right now," one trader told AMM.

Suppliers attributed the continued run-up mostly to supply constraints. "It’s tight. It’s very, very tight," a second trader said.

A third trader agreed, noting that while his business logged a slight slowdown in the first week of May vs. the prior week, supply remains tight enough to keep premiums firm. ....

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