The estimated arbitrage for shipping aluminium from warehouses in Asia to the United States narrowed in March following a large rise in US river barge prices and slightly softer aluminium premiums in the region.
The cost to ship metal via barge from New Orleans up the Mississippi and Ohio rivers to Owensboro have increased around $5 per tonne to nearly $21.50 per tonne. "Spot barge rates are the significant cost increase as a result of high water in the Gulf, Mississippi and Ohio rivers swollen above flood stage in most areas. This has resulted in lock closures and the inability of barge operators to schedule delivery of cargoes hence the $5 increase in spot rates subject to availability of equipment," a market source said. Despite the increase of barge rates though, the US Midwest premium was muted throughout the month of March. The average monthly midpoint of the P1020 US Midwest premium fell to $418.87 per...