What could rebalance the US scrap market?
Cheap aluminum scrap has not triggered widespread buying due to saturated demand, chemistry limits, and limited processing capacity.
Tag: Trading
AMU Explainer: Metal storage and why contango matters to traders
With LME contango insufficient to cover financing and storage costs, the aluminum market has shifted the burden of carry onto physical premiums, forcing traders to rely on premium appreciation to keep inventory economically viable.
Aluminum Explainer: Options as a risk management tool
An explainer on how aluminum options function as price insurance, outlining common strategies and practical use cases for producers and consumers.
AMU Explainer: Understanding open interest as a guide to price movements on LME
This AMU Explainer breaks down how LME open interest works and how it can help you interpret shifts in market sentiment and price direction.
AMU Explainer: Backwardation versus contango and why it matters
AMU Explainer is a series where we demystify parts of the aluminum industry.
AMU Explainer: Buying physical metal on The London Metal Exchange
The metals industry can confusing for a newcomer. The aim of this series is to explain these terms and practices in plain language.
China trade data: Pivoting away from U.S. dependency
Ever since it launched its One Belt One Road campaign in 2013, China has been relentless in building markets overseas.
LME outlines plans to modernize options market
Most of the world’s global non-ferrous futures business is conducted on the LME’s three trading platforms, totaling $18 trillion, 178 million lots and 4 billion tonnes with a market open interest high of 1.8 million lots in 2024.
Join AMU for a webinar about the future of premiums and scrap tolling
Join AMU experts Greg Wittbecker and Nicholas Bell on Thursday, September 25 at 11 a.m. ET
LME contangoes: Why they may or may not matter
Volatile LME spreads may not directly dictate physical aluminum prices, but with tight inventories, rising Midwest premiums, and traders creating "artificial contangoes", financing costs are increasingly being pushed into the physical market.