07 JANUARY 2014www.businessweek.com
Aluminum premiums seen reaching record as U.S. surcharge climbs
Edited by : AL CIRCLE
1 min read
The premiums buyers pay for aluminum are poised to reach records after extending highs in the U.S., according to a report from Harbor Intelligence, an Austin, Texas-based researcher.
The surcharges are set to reach all-time highs in the next few weeks in Europe, Asia, Mexico and Brazil, according to a Harbor report on Jan. 3. That’s when the U.S. Midwest premium added to the price of aluminum on the London Metal Exchange rose to a record 14.75 cents a pound from 13.75 cents the day before.
“Buyers can’t really find metal at 12 cents a pound,” Jorge Vazquez, the managing director of Harbor, said in the report. “Traders/producers are practically not willing to sell metal at premiums lower than 14.75 cents a pound Midwest.”
Aluminum for delivery in three months fell 0.6 percent to $1,762.75 a metric ton on the LME by 2:24 p.m. local time. The metal used in beverage cans and aircraft declined 15 percent in the past year.
The surcharges are set to reach all-time highs in the next few weeks in Europe, Asia, Mexico and Brazil, according to a Harbor report on Jan. 3. That’s when the U.S. Midwest premium added to the price of aluminum on the London Metal Exchange rose to a record 14.75 cents a pound from 13.75 cents the day before.
“Buyers can’t really find metal at 12 cents a pound,” Jorge Vazquez, the managing director of Harbor, said in the report. “Traders/producers are practically not willing to sell metal at premiums lower than 14.75 cents a pound Midwest.”
Aluminum for delivery in three months fell 0.6 percent to $1,762.75 a metric ton on the LME by 2:24 p.m. local time. The metal used in beverage cans and aircraft declined 15 percent in the past year.
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