NEW YORK (Dow Jones)--The U.S. Midwest prompt aluminum premium over London Metal Exchange cash prices remains essentially steady as pressure from weak demand for the metal meets support from producer warehousing.
Observers put the premium from 3.75 cents to 4.5 cents this week, compared with 3.75 cents to 4.35 cents in mid-April.
"It's been pretty stagnant," a trader said.
While a lack of physical demand pressures the premium, support is coming as the low demand encourages warehousing in London Metal Exchange-monitored storehouses.
The trader cited the premium between 4 cents and 4.5 cents.
Mike Southwood, publications manager with CRU Group, sees the premium between 3.75 cents and 4.25 cents, averaging at 4 cents, as there have been "no real demand increases as of yet."
LME cash aluminum was officially quoted at $1,550.00 to $1,550.50 per metric ton Thursday, or about 70.30 cents to 70.32 cents per pound.
Inventories of aluminum stored in
LME warehouses rose 5,000 metric tons to 3,844,725 from Wednesday to Thursday. The total is up from 3,786,225 metric tons one week ago.
-By Matt Whittaker, Dow Jones Newswires; 201-938-5959; matt.whittaker@dowjones.com
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