The aluminium import arbitrage between the United States and Asia narrowed on Wednesday October 3 due to a weaker London Metal Exchange price and a softer P1020 US Midwest delivered premium.
Despite the tighter arbitrage window, market participants still see opportunities in taking metal from Asia into the US. The differential between canceling aluminium without the 10% Section 232 tariff from LME-listed warehouses in Asia and shipping the material into the US Midwest narrowed in September after widening the month before. For duty-free metal originating from warehouses in Singapore, the estimated arbitrage was at $290.81 per tonne for shipments of 10,000 tonnes (via break bulk shipments), down from $301.88 per tonne the...