Contact Us
Tel: +86-571-86731050
Fax: +86-571-88222577
Address: No.98 Linhang Avenue, Leidian Town, Deqing County, Hangzhou City, Zhejiang Province, P.R.China
Home > News > Content
GLOBAL ALUMINIUM WRAP: US Midwest Premium Continues To Climb, Backwardation In LME Spreads Caps Gains
Feb 28, 2018

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 Backwardation puts lid on US premium’s 232 push 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 further in the short term