Aluminum heads into March with questions

A rally in aluminum pricing in January proved to be short-lived, as the premium fell by 1.55 points in early February. This resulted in a sharp decline and leveling off in the latter half of the month, allowing the Midwest US Transaction Premium (MWUSTP) to close the month at 1.14/lb. Having navigated through the challenges of the year’s outset, March is beginning with a promising uptick with MWUSTP at 1.16/lb.

Since the MWUSTP is the base price that the aluminum scrap spreads use to determine the scrap item for pricing, let’s delve into the concerns that shaped the previous months and assess our prospects as we over forward into March.