Aluminum demand seen in line for fall

Apr 07, 2014 | 06:06 PM | Michael Cowden

Tags  London Metal Exchange, LME, regional premiums, Midwest premium, Bank of America Merrill Lynch, Morgan Stanley, Charles Bradford, Metals Industry Advisory Group aluminum prices

CHICAGO — Production cuts and a U.K. High Court ruling preventing reforms to London Metal Exchange warehouse policies could drive aluminum prices and regional premiums for the light metal higher, analysts said.

However, while good for producers in the short term, higher prices could hurt future aluminum demand as the light metal increasingly competes with steel in the automotive sector, one analyst noted.

Higher prices and regional premiums come as the LME said in an April 7 notice that it was "taking legal advice" to find the "quickest effective route" to slash waits for metal at warehouses with bloated inventories despite the High Court’s ruling placing previously proposed reforms on hold (, March 27).....

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