Midwest aluminum premium down again

Sep 05, 2013 | 04:24 PM | Michael Cowden

Tags  Midwest premium, aluminum, London Metal Exchange, LME, warehouse rules, Michael Cowden

CHICAGO — Midwest aluminum premiums slipped again this week on continued skittishness about the potential impact of new London Metal Exchange warehousing rules.

AMM’s spot P1020 aluminum premium moved to 10 to 11 cents per pound Sept. 4 from 10.5 to 11 cents previously.

"It’s like a long winter storm. The snow keeps coming," one producer source said.

Some market sources worry that premiums will dip into single digits, but others say warehouse financing deals continue to provide support. "Everyone believes it’s going to go lower. But the contango is still there, so the financing deals are still able to be done off-warehouse—and that’s somewhat of a floor," one buyer said. "I don’t know where that floor is, but it’s not going to be 5 (cents per pound)."....





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