LME rules to sink US premiums: Century

Nov 12, 2013 | 03:44 PM | Michael Cowden

Tags  Century Aluminum, Michael Bless, Midwest premium, London Metal Exchange, LME, warehouse rules, Hawesville smelter, Sebree smelter billet

CHICAGO — New London Metal Exchange warehouse policies aimed at slashing queues for metal will also cause a drop in U.S. Midwest aluminum premiums, according to Century Aluminum Co.’s top executive.

"We think (Midwest premiums) should come down, all else being equal," president and chief executive officer Michael A. Bless said Nov. 11 in a presentation at Cowen & Co.’s fourth annual Global Metals, Mining & Materials Conference in New York.

Midwest premiums could tumble to between 7.5 and 9 cents per pound from 10.15 cents per pound currently, Bless said. In addition to the new LME rules, another bearish signal for premiums is that U.S. interest rates are expected to rise, he added.....





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