US Aluminum: Midwest Premium Seen Steady To Slightly Higher

NEW YORK (Dow Jones)--The U.S. Midwest prompt aluminum premium over London Metal Exchange cash prices is steady to slightly higher compared with mid-November's premium. Observers cited the premium in a range from 5.35 cents to 5.7 cents, with most of the business coming in around 5.5 cents. "Despite the fact that we are facing higher prices, demand remains steady and (is) slightly improving," said Harbor Intelligence analyst Jorge Vazquez, who sees the premium from 5.35 cents to 5.5 cents. Destocking of the metal seems to be over, he said. While buying continues on an as-needed basis, that demand is inching higher as orders increase, he said. One trader said the premium is in a range from 5.5 cents to 5.75 cents. Another sees a range from 5.4 cents to 5.6 cents, but mostly at 5.5 cents while spot volume remains light but is picking up further out. LME cash aluminum was officially quoted at $2,006 to $2,007 per metric ton Wednesday, or about 90.99 cents to 91.03 cents per pound. Inventories of aluminum stored in LME warehouses rose 8,100 metric tons to 4,594,650 metric tons from Tuesday to Wednesday. The total is up from 4,559,325 metric tons one week ago. -By Matt Whittaker, Dow Jones Newswires; 212-416-2139; matt.whittaker@dowjones.com