Midwest aluminium premiums trend upward

Midwest aluminium premiums ticked higher this week, with market participants saying that elevated premiums in Brazil and Japan, coupled with continued issues related to higher domestic freight charges, had prompted sellers to test the upper limits of the market.

Metal Bulletin sister title AMM’s assessment of spot P1020 premiums jumped to 20.25 to 20.75 cents per lb on August 13 from 19.75 to 20 cents previously. Traders speculated that a primary driver behind the increase was the impact of spiking premiums in other major international markets. "There are high premiums all over the world," one trader told AMM, noting that sellers in the USA often use premiums in international markets as a benchmark for establishing domestic premiums. "Japan is high, China is high and Brazil...

Published

This article was first published by AMM

August 15, 2014

06:15 GMT

New York