Spot Midwest premium passes 15¢/lb.

Jan 08, 2014 | 05:56 PM | Michael Cowden

Tags  Midwest premium, P1202, London Metal Exchange, LME, warehouse, inventories, Ormet, production cuts aluminum

CHICAGO — U.S. Midwest aluminum premiums have surged to more than 10-year highs, surpassing previous records set this past summer.

AMM’s spot P1020 aluminum premium moved to a range of 15 to 16.5 cents per pound Jan. 8, up from 11.5 to 12 cents per pound previously.

Premiums had drifted to 9.5 to 10 cents per pound in late September following proposed warehouse rule changes by the London Metal Exchange (amm.com, Sept. 26), but they have since rallied to more than regain lost ground.

Production cuts, financing deals and a tight scrap market have meant available supplies are limited despite bloated warehouse stocks at both LME-listed and "stealth" sheds, market sources said.....





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