GLOBAL ALUMINIUM WRAP: US Midwest premium hits new high despite LME spread backwardation; Asian premiums fall

Tight aluminum supplies and high logistics costs pushed the US Midwest premium to a record high in the week to Tuesday August 17 and kept Rotterdam premiums firm despite a spread backwardation on the LME - although that combined with slow demand to put downward pressure on Asian premiums.

The United States Midwest market sets another record high on tight suppliesIn Europe, Rotterdam premiums remained firm amid strong demand and high logistics costsMJP, South Korean premiums went down due to slow demand, London Metal Exchange backwardationUS Midwest premium, unshaken by backwardation, soars to yet another record
Fastmarkets assessed the aluminium P1020A premium, ddp Midwest US at 34.5-36 cents per lb on Tuesday, yet another all-time high and up by 0.71% week on week from 34.5-35.5 cents per lb on August 13. The rise came despite a steep backwardation between the cash and three-month contracts on the LME.
The cash/three-month spread was trading in a backwardation of $14.74 per tonne on Tuesday compared to a $7.40-per-tonne contango a week earlier, while the nearby cash/September spread moved to a $20-per-tonne backwardation.

Most market participants attributed the persistent increases to ongoing...

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