US Midwest aluminium premium logs record jump on Section 232 news

The Midwest aluminium premium soared by 5 cents on Friday August 7, logging its largest increase since Fastmarkets began assessing this premium in January 2003, with traders boosting offers on replacement cost considerations after the US reintroduced Section 232 tariffs on Canadian aluminium.

Fastmarkets assessed the aluminium P1020A premium, ddp Midwest US at 16-17 cents per lb on August 7, up by 5 cents (43.5%) from 11-12 cents per lb previously.
The premium is now at its highest since mid-November 2019.

“It’s unprecedented. I’ve never seen it move so quickly,” one trader source said of the jump. “I think the premium’s going through the roof. It could get stupid really quick until replacement units come in and it settles...

Published

Michael Roh

August 07, 2020

20:35 GMT

New York