http://www.sina.com.cn 2007年01月19日 11:20
DJ US Aluminum: Midwest Premium Kept In Check By Backwardation
The U.S. Midwest prompt aluminum premium over London Metal Exchange cash
prices is being held back by backwardation, traders said.
The premium mainly has been around 3.5 to 4 cents a pound in recent days,
according to one trader. However, another pointed out, there can be a big
variation in premiums, depending on the delivery date.
A trader suggested the bulk of the activity has been closer to the lower end
of the current range - around 3.5 cents.
"The market has been mostly focusing on this backwardation that has been
going on, taking a little bit of the focus away from the physical market," said
Backwardation tends to push the premium lower, the trader explained.
"People don't want to carry metal. If they're carrying anything, they want to
sell it so they can offset their hedge."
Another trader also described backwardation as the main feature, explaining
that traders don't want to finance metal, thus are trying to get rid of
"Where the premium is today is anybody's guess," he said. "I've heard of so
little consumer business this week."
When selling forward to perhaps March, it may be possible to get a premium of
3.75 cents, he said. But it would be less for January business, he continued.
LME cash aluminum was officially quoted at $2,779 to $2,780 per metric ton
Wednesday, or about $1.2603 to $1.2608 per pound.
Inventories of aluminum stored in LME warehouses rose 12,625 metric tons to
714,025 from Tuesday to Wednesday. The total is up from 694,475 on Friday.新浪声明：本版文章内容纯属作者个人观点，仅供投资者参考，并不构成投资建议。投资者据此操作，风险自担。