The US Midwest aluminium premium has risen to its highest since Fastmarkets' initial assessment in 2003, with the market struggling to attract much-needed supply.
Fastmarkets assessed the aluminium P1020A premium, ddp Midwest US at 24-25 cents per lb on Friday April 23, up by 2.08% from 23.5-24.5 cents per lb one week earlier.Friday's assessment surpasses the premium's previous high of 24.00-24.25 cents per lb in January 2015.The premium is up by 48.48% from 16-17 cents per lb at the start of March and by 133.33% from 10-11 cents per lb on April 23, 2020.Market participants cited many factors behind the premium's record high. "There's a deep structural problem that stems from [Covid-19], the freight, the excess demand, smelters at capacity, etc," one trader said.Said a second trader: "There's no scrap. Costs keeping going up. It's a perfect storm. Demand is good and...