US aluminum premium futures lower on spot cancellations
Hellenicshippingnews - CME Group’s AUP Midwest aluminum premium forward curve was lower through 2020, amid the auto and aerospace sectors shutting down and concerns on corporate earnings over the coronavirus pandemic.
This has affected rolling mills as some have recently canceled tonnage for April and May, while others are running limited capacity and taken aluminum contract minimums.
The futures contracts trade on CME Globex and CME Clearport and settle on a monthly basis, based on the Platts US Aluminum Transaction premium.
The US Midwest premium dropped 0.50 cent/lb to 11 cents/lb on April 3 on lower confirmed deals with lower bids and offers.
The April monthly premium average sat at 11.313 cents/lb and the monthly transaction price average for April was 76.953 cents/lb as of Monday’s close.