Aluminum premiums inch up on low LME

Feb 28, 2013 | 12:35 PM | Michael Cowden

Tags  Midwest premium, P1020, LME, scrap, aluminum, aluminum prices, nonferrous, Michael Cowden

CHICAGO — Midwest aluminum premiums have edged up slightly due to low prices on the London Metal Exchange and weak scrap flows, even as the overall demand situation remains largely unchanged, according to market sources.

AMM’s P1020 premium has inched up to between 11.35 and 12 cents per pound this week from between 11.3 and 12 cents per pound last week.

The slightly higher premiums come at a time when exchange-traded aluminum prices are on the decline.

"Usually when the LME comes down is when the higher premiums are paid," one market source said, noting that some customers pay less attention to premiums than an "all in" price comprising both the LME price and the premium. That all-in price may have dropped from between $1.06 and $1.07 per pound last week to about $1.03 per pound this week due to a falling LME price, even with the slightly firmer premiums, he said.....

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