ALUMINIUM ARB INDICATOR: Weak US aluminium market stifles arbitrage opportunities

A falling US Midwest aluminium premium, stronger currencies in Asia and sustained higher freight rates have limited estimated arbitrage opportunities between aluminium warehouses in Asia and the United States.

Fastmarkets' assessment of the monthly average midpoint for the aluminium P1020A premium, ddp Midwest US, was at $389.48 per tonne for the month of October. The premium is down from $391.32 per tonne the month before. Weak demand and cheap scrap in the US were the primary reasons for the premium’s recent downtrend, while a persistent backwardation on London Metal Exchange aluminium spreads added further pressure to the market. Fastmarkets assessed the aluminium P1020A premium, ddp Midwest US at 16.75-17.25 cents per lb ($369.27-380.29 per tonne) on Tuesday, where it has been steady...

Published

Justin Yang

November 06, 2019

14:26 GMT

London