UC Rusal Expects Record Aluminum Prices Later This Year Based on LME Tie-Ups

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Premiums paid to secure aluminum are poised to exceed $500 a metric ton as soon as the coming quarter on stronger demand and limited supplies, according to United Co. Rusal, the world’s largest aluminum smelter,  implying a jump of at least 20 percent.

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At least 75 percent of stockpiles in London Metal Exchange warehouses are tied into financing transactions and unavailable for immediate withdrawal, Deputy Chief Executive Officer Oleg Mukhamedshin told Bloomberg News in a telephone interview from Moscow, where the company is based. The “overall” global surcharge, added to the price on the LME, will be “well above” $500 a ton in the third quarter, he said.

Dropping 0.9 percent, the cash price of primary Indian aluminum was the biggest mover on Tuesday, June 3, closing at INR 109.95 ($1.86) per kilogram. The cash price of primary aluminum saw a 0.4 percent decline on the LME to $1,816 per metric ton. On the LME, the aluminum 3-month price declined 0.3 percent to $1,850 per metric ton.

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Chinese aluminum closed mixed on Tuesday. The Chinese aluminum cash price rose 0.2 percent to CNY 13,320 ($2,132) per metric ton. The price of Chinese aluminum scrap continues hovering around CNY 12,250 ($1,961) per metric ton for the fifth day in a row. For the fifth consecutive day, the price of Chinese aluminum billet held flat at CNY 13,590 ($2,175) per metric ton. The price of Chinese aluminum bar held steady at CNY 14,200 ($2,273) per metric ton.

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