European aluminum customers will be expected to pay record prices for premiums in the second half of this year, as daily aluminum prices in India and on the LME increased on MetalMiner IndX.
According to reports, the warehouse queue backups and continued interest in aluminum financing deals are still the main culprits behind pushing premiums up, as the LME struggles to continue its reforms aimed at freeing up metal, as well as fending off contracts from competitors such as CME Group.
At INR 107.95 ($1.81) per kilogram, the cash price of primary Indian aluminum moved up 3.1 percent on Thursday, May 15, making it the day’s biggest mover. After a 1.2 percent increase, the 3-month price of aluminum finished the day on the LME at $1,803 per metric ton. On the LME, the cash price of primary aluminum rose 1.1 percent to $1,758 per metric ton.
Chinese aluminum prices were flat for the day. The Chinese aluminum cash price remained essentially flat at CNY 13,035 ($2,093) per metric ton. The price of Chinese aluminum scrap saw essentially no change for the fifth day in a row, remaining around CNY 12,250 ($1,967) per metric ton. The price of Chinese aluminum billet continues hovering around CNY 13,590 ($2,182) per metric ton for the fifth day in a row. The price of Chinese aluminum bar remained essentially flat at CNY 14,200 ($2,280) per metric ton.