Russian aluminum producer Rusal , after switching to floating aluminum premiums for its customers in 2013, wants to go back to fixed-term rates.
According to Reuters, Rusal’s chief marketing officer is quoted as saying, “Last year, we felt that floating gave a fair outcome for producers and consumers. This year, we would look to fix some of our requirements and not leave it open. We will fix what we can…There are segments of the market that prefer that anyway. There will be a basket of different outcomes. More fixed would be our preference.”
Aluminum producers, such as Rusal, Alcoa and Rio Tinto, wanted more exposure to the spot price when they saw premiums rise in 2012, which is why they decided to float them in 2013.
Today’s Aluminum Prices
On Thursday, September 19, the day’s biggest mover was the aluminum cash price, which saw a 0.7 percent increase on the LME to $1,742 per metric ton. This increase comes after the price fell for the two previous days. Following a 0.4 percent rise on Thursday, the 3-month price of aluminum closed on the LME at $1,784 per metric ton.
The Indian aluminum cash price held steady.
Chinese aluminum prices closed flat for the day. Chinese aluminum scrap stayed flat. The price of Chinese aluminum billet showed little movement on Thursday. For the fifth day in a row, the price of Chinese aluminum bar remained essentially flat. The Chinese aluminum cash price showed little movement on Thursday as well.