Midwest aluminum premiums steady

Oct 03, 2013 | 02:11 PM | Michael Cowden

Tags  Midwest premium, spot premium, P1020, Davenport & Co., Lloyd O'Carroll, John Ockerman, Lawrence Capital Management, Timothy Hayes F-150

CHICAGO — Midwest aluminum premiums have held their ground despite scattered reports of discounting along with uncertainty about the length and potential impact of the U.S. government shutdown.

AMM’s spot P1020 aluminum premium remained at 9.5 to 10 cents per pound Oct. 3 despite continued reports of discounting at prices as low as 9 cents (amm.com, Sept. 26).

With the market in contango and replacement costs high, several sources said they saw no reason to let go of metal for premiums much below 10 cents per pound.

"We believe that premium bears have triumphantly touted the recent decline in physical premiums as proof that a double-digit Midwest premium is unsustainable without warehouse incentives," Davenport & Co. LLC analysts Lloyd O’Carroll and John Ockerman said in a research note.....

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