LME rules to sink US premiums, Century ceo says

The new London Metal Exchange warehouse policies aimed at slashing queues for metal will also cause a drop in US midwest aluminium premiums, according to Century Aluminium’s top executive.

“We think [midwest premiums] should come down, all else being equal,” Michael A Bless, president and ceo, said on November 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 US interest rates are expected to rise, he added. Wide...

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This article was first published by AMM

November 13, 2013

02:55 GMT