US Midwest P1020 aluminium premium up; traders bullish

The US Midwest aluminium premium moved higher on Friday November 20, with traders bullish - and reluctant to part with metal - due to tight supply, high freight and scrap costs, and recent news about the Boeing 737-Max and promising Covid-19 vaccines.

Fastmarkets assessed the aluminium P1020A premium, ddp Midwest US at 13.5-15 cents per lb on Friday, up by 5.6% from 13-14 cents per lb previously, where it had held since November 3. Recent spot deals have been reported at prices above the current premium level, while discounts have faded from the market. “The market’s strong. I can tell you discounts are very slim,” one trader said. Meanwhile, import flows of primary aluminium from Canada have slowed significantly, squeezing supply in the US market. “Canadian smelters are afraid of potential tariffs. So they’re exporting more billet instead of primary, and the...

Published

Michael Roh

November 20, 2020

23:23 GMT

New York