Midwest aluminum premiums narrow

May 17, 2013 | 02:55 PM | Michael Cowden

Tags  Midwest premium, P1020, LME, aluminum prices, trucking costs, aluminum, Michael Cowden

CHICAGO — Midwest aluminum premiums rose slightly this past week after discounts subsided in the wake of lower metals prices on the London Metal Exchange.

AMM’s Midwest aluminum premium narrowed to 11.45 to 11.85 cents per pound May 16 from 11.2 to 11.85 cents previously.

One trader source, echoing other market participants, characterized the current market as sluggish, especially for a time of year that generally sees increased activity. But it could be a lack of liquidity that is helping to keep premiums up, he said.

"The Midwest (premium) feels like it’s under pressure ... and if you want to move big volumes, you are going to have to give the premium away—that’s all there is too it," the trader said. "But you can’t move (premiums) when there is no business."....

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