Aluminum futures trading started on Monday on the CME Group’s new exchange in Chicago, a move supported by companies such as MillerCoors that complained of price distortions cause by delivery delays at warehouses run by the London Metal Exchange.
The new futures contract will offer a “North American benchmark for managing price risk” on aluminum — with access to the metal at warehouses in Baltimore, New Orleans and Ypsilanti, Mich., according to the CME, which owns the world’s largest futures exchange, the Pittsburgh Tribune-Review reported.
The Indian aluminum cash price closed up Monday, May 5 at INR 109.40 ($1.82) per kilogram, halting two days of weakening prices with a 1.8 percent shift. On the LME, the aluminum 3-month price declined 0.2 percent to $1,777 per metric ton. The cash price of primary aluminum flattened at $1,736 following two-days of declines on the LME.
Chinese aluminum prices closed flat for the day. The Chinese aluminum cash price showed little movement on Monday at CNY 13,280 ($2,122) per metric ton. The price of Chinese aluminum scrap saw little movement at CNY 12,250 ($1,957) per metric ton. The price of Chinese aluminum billet continues hovering around CNY 13,590 ($2,171) per metric ton for the fifth day in a row. The price of Chinese aluminum bar remained essentially flat at CNY 14,200 ($2,269) per metric ton.