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LME prices could reach $1,840 as soon as Q3; US Federal agencies likely to investigate MW premium pricing

US MW PREMIUM ALERT.

Executive Summary

1. LME PRICE ALERT. LME prices closed today at a fresh multi-month high and could confirm tomorrow the start of new wave up toward $1,840 per mton—which could be reached before the end of Q3 rather than before the end of the year.

2. US MW PREMIUM ALERT. Two US federal agencies could soon be required by Congress to investigate MW premium pricing practices.

3. US BILLET ALERT. Recovering B&C and automotive (truck wheels included) have increased billet demand.

4. HARBOR FIRST ALERT. Rusal America and Cuprum announce Green Aluminum partnership.

5. EUROPE WIRE ROD UPDATE. Western European EC rod demand remains strong, but some Balkan and UK-based wire makers seem struggling.

6. PRIMARY PRODUCTION UPDATE. ROW primary aluminum production still facing headwinds; Chinese output accelerates amid improving profitability.

7. LME Cash–3M and longer term contangos narrowed today but continue to be supportive for spot P1020 premiums around the world.

8. China’s aluminum prices climb back toward one-week highs.

More details in full report.