US Midwest premium moves higher, could soar on uncertainty

The US Midwest aluminium premium ticked up over the past week, following the US Department of Commerce confirming its three recommendations for President Donald Trump in the Section 232 investigation concerning aluminium imports into the United States.

American Metal Market’s latest assessment of the P1020 spot premium climbed to 14-14.25 cents per lb this week, its highest level since early May 2015 and up 49.47% since the beginning of the year. The main driver of that increase appears to be ramped up market uncertainty, stemming from the three possible 232 trade actions Commerce supports. Commerce’s proposals mean there’s a real possibility that any material US aluminium suppliers now hold could be worth significantly more soon – so sellers are wary of booking deals ahead of any price spike.  “We’re trying to get everything in balance,” one supplier said. “The...

Published

February 21, 2018

01:00 GMT