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.
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.
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.