US aluminum premium futures backwardation continues to steepen

摘要

CME Group’s AUP Midwest aluminum premium futures slid slightly for 2020 during the week ending Sept. 14, as the first half 2021 curve was offered lower on consumer demand uncertainty after the restocking of inventories during the coronavirus shutdowns and ahead of the reimposition of tariffs on Canada that caused the spot premium to rise. The healthy LME contango also allows market participants to sit on inventories with spreads trading above the cost of warehousing and financing.