Midwest premiums said on shaky ground
Jul 19, 2013 | 08:55 AM
| Michael Cowden
CHICAGO Midwest aluminum premiums held mostly steady in the past week but remain pressured as debate lingers over whenand to what extentthey might fall due to proposed changes in London Metal Exchange warehousing rules.
While concerns have been raised about the impact of the LME proposal, aimed at reducing long lines at some warehouse locations (amm.com, July 1), market sources agreed that a cap had been placed on premiums until the effects are clear.
AMMs spot premiums for P1020 remain unchanged at 11.75 to 12 cents per pound.
"Premiums are going to be under pressure. Theres no question about it. But it probably wont happen overnight. All we know is (premiums) arent going to go any higher," one market observer said, adding that primary scrap grades are in short supply and buyers are hard-pressed to find prompt metal at a discount.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.