A sustained weakness in the United States' Midwest aluminium premium and increased barge freight rates pushed the estimated arbitrage between Southeast Asian warehouses and the United States to an 18-month low.
The narrowing arbitrage follows on from a continual dip in regional aluminium premiums in the US.Fastmarkets' assessment of the monthly average midpoint for the aluminium P1020A premium, ddp Midwest US was at $391.93 per tonne in August, down from $400.50 per tonne in July and the lowest level since February 2018.A seasonal lack of liquidity and weak market fundamentals kept premiums in the US subdued for much of August.Weak demand...