Midwest aluminum premiums slip

Mar 06, 2014 | 03:53 PM | Michael Cowden

Tags  aluminum, Midwest premium, P1020, aluminum imports, Morgan Stanley, Russia, Ukraine, Michael Cowden

CHICAGO — Midwest aluminum premiums dropped again this week as market sources fretted about increased import volumes and the potentially chilling impact of a cold winter on demand.

AMM’s spot P1020 premium slipped to 18.75 to 19 cents per pound March 5 from 19 to 19.5 cents previously.

"The premium ran up fast, and what goes up must come down," one trader said, estimating that premiums could fall another penny before March is over.

The trend results in part from high premiums in the United States attracting metal that might ordinarily have gone to Europe or Asia, market sources said. Material was redirected to the U.S. market after Midwest premiums spiked to more than 20 cents per pound earlier this year, with some of that metal arriving in March and April, they said. ....

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