Midwest aluminum premiums hold steady

Apr 12, 2013 | 05:05 PM | Michael Cowden

Tags  Midwest premium, P1020, LME, warehouse, scrap, contango, backwardation, aluminum nonferrous

CHICAGO — Midwest aluminum spot premiums held their ground this past week as warehousing deals and a tighter aluminum scrap market bolstered tags despite continued concerns about end-use demand in some markets.

AMM’s Midwest premium remained unchanged at between 11.5 and 12 cents per pound, with most transactions continuing to be reported within that range.

Helping to keep a floor under premiums is the fact that some consumers are substituting primary aluminum for hard-to-secure scrap grades, sources said.

"Some consumers prefer buying prime because scrap is very tight and yards have been low on scrap units," one trader said. "I don’t see premiums tailing off. I think buyers are getting ready to reload."....





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