The Midwest aluminium premium in the United States logged a second consecutive drop, with market participants pointing to the growing backwardation of aluminium prices on the London Metal Exchange as the primary driver.
American Metal Market assessed the spot P1020 premium at 20.5-21 cents per lb on Friday June 29, down from 21.25-21.5 cents per lb on June 26 and the lowest level since reaching 18.75-19.25 cents per lb in early April. The premium had hit a nearly three-year high of 22-23 cents per lb on April 10.According to market participants, the growing backwardation spread on the LME is making sellers more willing to discount off of published premiums in order to move P1020 to the few buyers looking for...