Market divided on aluminum premiums

Apr 29, 2013 | 10:42 AM | Michael Cowden

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

CHICAGO — Midwest spot aluminum premiums remained unchanged last week amid what appeared to be considerable uncertainty about the direction of the market.

Some market players insist that premiums are poised to move upward, citing profitable warehouse financing deals, the use of P1020 as a substitute for scrap and the possibility of continued low prices on the London Metal Exchange forcing some smelters to shut, thus reducing supply.

The LME’s cash aluminum contract ended last week at $1,890 per tonne, up 4.8 percent from a recent low of $1,804 on April 15 but down 11 percent from a 2013 high of $2,123 per tonne on Feb. 15.

AMM’s Midwest premium was unchanged in a range of 11.2 to 11.85 cents per pound....

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