The estimated arbitrage between Southeast Asian warehouses and the US Midwest continued to narrow in May, due to lower Midwest premiums and a spike in spot barge rates.
This reduces demand for other origin material, such as that from Southeast Asian warehouses, meaning there is less room for arbitrage opportunities. "The removal of import tariffs on Mexico and Canada will provide cheaper options for consumers and make the Asian arbitrage play relatively unattractive, for the time being anyway," a market source said.US President Donald Trump removed the 10% tariff on aluminium imports for Canada and Mexico on May 17, which he had initially implemented in March 2018."If you look at Canadian metal so far most of it is staying...