LME rule change could prompt billet output rise
Jul 22, 2013 | 04:27 PM
| Michael Cowden
CHICAGO Some aluminum billet market participants have predicted that the proposed new London Metal Exchange warehouse load-out rules could see billet production ramp up.
The proposed rules, aimed at trimming long queues for metal at LME-registered warehouses (amm.com, July 1) would make warehouse deals for P1020 ingot less attractive leading producers to mull whether they should realign output towards more billet than P1020, billet market sources said.
It is being discussed. (Producers) are considering moving some P1020 production to billet, a consumer source told AMM.
Midwest P1020 premiums have become a reflection of warehouse dynamics since banks and trading houses became involved in their ownership, one billet producer source said. Midwest (premiums) used to be based on freight, and now it has almost absolutely nothing to do with it, he said. ....
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