The US Midwest aluminium premium has fallen for the third assessment in a row, fueled largely by sellers trying to move metal ahead of a pricing backwardation on the London Metal Exchange expected to hit in December.
Fastmarkets AMM's assessment of the spot duty-paid P1020 premium fell to 19-19.75 cents per lb on Tuesday October 23, down on the low end from the previous assessment of 19.25-19.75 cents per lb on Friday October 19. The premium is now close to being at its lowest level since early April, before the US Department of the Treasury announced sanctions against UC Rusal.While some buyers have reduced their spot activity due to fallen aluminium scrap prices making that material a viable low-cost alternative to primary aluminium, market participants indicated that some consumers are still in the market - acquiring prime material to use as feedstock while their scrap inventories are generally full.What's driving the premium down further, despite the LME...