Weak United States aluminium premiums and increased ocean shipping costs led to a continued narrowing of the estimated arbitrage between Southeast Asia warehouses and the US Midwest.
Fastmarkets assessment for the average monthly midpoint of the P1020 US Midwest aluminium premium was at $418.87 per tonne in April, flat from March.Oversupply has created pressure on the US premium over the month, narrowing arbitrage opportunities for the third straight month.Widespread discounts for P1020, with the rise of competitively priced aluminium scrap substitutions, throughout April have led to a lack of consumer demand in the region. There was an abundance of duty-free metal in the US as well, market participants told Fastmarkets."There's...