Aluminum premiums to hold firm: Davenport

Jun 28, 2013 | 10:24 AM | Michael Cowden

Tags  Davenport & Co., Lloyd O'Carroll, John Ockerman, aluminum, production cuts, LME, European recession, Midwest premium aluminum prices

CHICAGO — Production cuts announced by aluminum producers won’t be enough to offset tepid aluminum demand this year, although regional premiums should continue to climb, according to Davenport & Co. LLC analysts.

"Producers are coming to terms with low aluminum prices—finally. However, the majority of these cuts have yet to be implemented," analysts Lloyd T. O’Carroll and John F. Ockerman said in a June 27 note to investors.

Aluminum prices will fall this year but should improve in 2014 thanks in part to slowing demand growth being offset by global production cuts, the analysts said, and aluminum demand should grow significantly over the next 10 years largely due to increased auto industry demand for aluminum body sheet. ....

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