Regional aluminium premiums will fall on LME rules, Novelis ceo says

Regional aluminium premiums should gradually decrease to levels last seen 18 to 24 months ago – or even four to five years ago – due to the new London Metal Exchange warehouse policies, Philip Martens, Novelis chairman and ceo, said.

“Over time, I think you will see a moderation of regional premiums. But it won’t happen overnight,” Novelis said on November 11 in an exclusive interview with Metal Bulletin sister publication AMM. The Atlanta-based aluminium roller and recycler generally passes through regional premiums in North America and Europe and should be unaffected by moves either way in those markets, Martens said. The main impact likely will be felt in Asia, where Novelis is exposed to Japanese premiums, which have increased sharply, while its competitors in China do not face...

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This article was first published by AMM

November 12, 2013

04:22 GMT

Chicago