The US Midwest aluminium premium declined further on Tuesday September 29, with growing uncertainty surrounding trade actions - not just against Canada - leading many traders to offer discounts in order to move material.
Fastmarkets assessed the aluminium P1020A premium, ddp Midwest US at 12.5-14 cents per lb on September 29, down by 7% from 13.5-15 cents per lb previously, where the premium had held since September 22.Offers were reported between 12 cents per lb and 15.5 cents per lb, demonstrating the wide-ranging views on spot premium levels, although traders that had offered above Fastmarkets' current assessment in previous weeks trimmed their offers to within the current range this week.One large-volume deal was heard at a floating discount for near-term delivery, while another was heard concluded at the top end of the new range.The premium has been declining since US tariffs on imports of aluminium from Canada were replaced with a hard quota under Section 232 on September 15. The premium has fallen by 14.5% standing at 15-16 cents per lb in mid-September, and is now at its lowest since early August.Market participants indicated that traders might be...