Backwardation puts lid on US premium’s 232 push
- US premium rises despite LME backwardation causing some traders to lower their quotations
- Traders in Europe keep to the sidelines with caution over Section 232 a dominant theme
- Talks for Q2 aluminium supply to Japan have begun, offers up approximately 30% from Q1
- Brazil premiums track US Midwest premium’s upward momentum
The US Midwest aluminium premium rose again this week on continued speculation about trade action under the Section 232 investigation, but those gains were stymied by backwardation on the LME.
The US premium
was assessed at 14-14.5 cents per lb on Tuesday February 27, up from 14-14.25 per lb a week ago.
The US market has essentially been split into two camps, according to market participants. One believes that President Donald Trump will enact trade remedies recommended by the US Commerce Department, and aluminium premiums will rise...