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    January 13, 2023

    CRU Aluminum: LME, Midwest Premium Up On Brighter News

    Written by Matthew Abrams

    The Midwest premium (MWP), calm at year end, started the new year off with a bang, and has jumped up $0.03-.04 in the first two weeks of January. Movement is likely based on the market regulating back up to the full replacement cost level (freight, inventory carry cost, insurance) as trading activity picks back up. There is also a bit of optimism in the market with recent economic announcements. Currently, the mid-year MWP is trading at $0.27/lb. Given the spread to Friday’s premium, another interim increase is likely. On the London Metal Exchange, the improved news from China and lower global energy prices are supporting a $200/metric ton lift in early January. Now trading at $2,539/mt, and with the Midwest premium at $0.26/lb, the metal value for new extrusion orders are $0.15/lb higher in January than they were on Dec. 31.

    CRU

    Matthew Abrams

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