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Aluminium prices soar on long lead times
Edited by : AL CIRCLE
1 min read
Aluminium premiums shot to record highs this week in the US Midewest, closing in on the 10 cent-per-lb level, as lengthy lead times out of North American warehouses continued to choke off supply flows.
Spot prices paid over the London Metal Exchange (LME) climbed to an all-time peak at 9.5 to 9.75 cents per lb this week, up more than 45% since the start of the year.
That meteoric rise has been fuelled largely by increasingly strong domestic demand and a growing regional deficit in North America, where incentive-based finance deals continue to attract greater amounts of the metal into the warehouses.
Nowhere have these "deals" created more bottlenecks in the supply chain than in Detroit, where more than 1.1 million tonnes of the lightweight metal sit.
With warehouse incentives in Detroit creeping up toward $150 per tonne, producers have continued to follow the money trail, preferring to store metal away cheaply for an extended period of time.
Spot prices paid over the London Metal Exchange (LME) climbed to an all-time peak at 9.5 to 9.75 cents per lb this week, up more than 45% since the start of the year.
That meteoric rise has been fuelled largely by increasingly strong domestic demand and a growing regional deficit in North America, where incentive-based finance deals continue to attract greater amounts of the metal into the warehouses.
Nowhere have these "deals" created more bottlenecks in the supply chain than in Detroit, where more than 1.1 million tonnes of the lightweight metal sit.
With warehouse incentives in Detroit creeping up toward $150 per tonne, producers have continued to follow the money trail, preferring to store metal away cheaply for an extended period of time.
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