Aluminum premiums dip on LME rule shift
Jul 11, 2013 | 03:00 PM
| Michael Cowden
CHICAGO Midwest aluminum premiums edged down slightly this week amid uncertainty about the impact of proposed London Metal Exchange rules aimed at trimming long lines at some registered warehouses.
AMM spot P1020 premiums fell to a range of 11.75 to 12 cents per pound from 12 to 12.25 cents previously.
"Its a super slow week, so people are digesting the news out of the LME," one producer source said.
Under new exchange proposals, warehouse companies would be required to deliver out more metal than they draw in at storage locations with long load-out queues (amm.com, July 1).
One immediate effect of the proposed new rules was a lowering of incentives that warehouse companies had been paying in order to get material into store (amm.com, July 5).
Incentives to put metal in LME warehouses "most likely would go down" if the rules are implemented, the producer source predicted.....
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