P1020 premium ‘bubble’ likely to pop: exec

Jun 20, 2013 | 03:32 PM | Michael Cowden

Tags  Midwest premium, aluminum premium, Aleris International, Theodore Lehmann, LME, London Metal Exchange, aluminum prices, AMM Aluminum Summit Michael Cowden

NEW YORK — The Midwest aluminum premium is a "bubble" that’s set to pop because it is driven by the financial community rather than supply and demand, according to one aluminum industry executive.

"The Midwest premium is in a bubble when you look (at premiums being) at all-time record highs yet the supply-demand fundamentals and the outright price at the LME (London Metal Exchange) are at historical lows; to me that feels like a bubble," Theodore Lehmann, vice president of metals procurement for the Americas at Cleveland-based Aleris International Inc., said in an interview on the sidelines of AMM’s Aluminum Summit in New York. "I don’t know how that bubble will play out over time, but bubbles tend to pop at some....





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