[ferro-alloys.com]CME Group's AUP Midwest aluminum premium forward curve was lower through 2020, amid the auto and aerospace sectors shutting down and concerns on corporate earnings over the coronavirus pandemic.

This has affected rolling mills as some have recently canceled tonnage for April and May, while others are running limited capacity and taken aluminum contract minimums.

The futures contracts trade on CME Globex and CME Clearport and settle on a monthly basis, based on the Platts US Aluminum Transaction premium.

The US Midwest premium dropped 0.50 cent/lb to 11 cents/lb on April 3 on lower confirmed deals with lower bids and offers.

The April monthly premium average sat at 11.313 cents/lb and the monthly transaction price average for April was 76.953 cents/lb as of Monday's close.

CME Group's May contracted settled Monday at 10.60 cents/lb, down 0.609 cent/lb on the week, with 337 lots trading.April-December 2020 strip traded own to 11.05 cents/lb, with 594 lots trading, now down 3.45 cents/lb since quarantines started being imposed by state governments.The fourth-quarter strip dropped slightly to 11.30 cents/lb, down 0.20 cents/lb on the week, after bouncing back slightly trading 11.50 cents/lb late last week.

The first-quarter 2021 strip settled at 11.75 cents/lb, up 0.15 cent/lb on the week, with 175 lots trading on the weekAUP total volume was 2,190 lots or 54,750 mt last week. Open interest was 27,435 lots, up 330 lots on Friday after the March contract expiration of 2,762 lots.

Spot to six-month spread settled at a 0.30 cent/lb contango as spot tons are canceled by rolling mills and metal is rolled into Q4 2020 and Calendar 2021.

Cash to three-month spread on the London Metal Exchange settled at $35.50/mt contango on Monday.

Cash/December 2020 spread on LME settled at $80.50 contango.

January 2021/December 2021 spread on LME settled at $80.50 contango.

LME net spec short reached 60% of open interest as of Thursday's close, largest since July 2012 in which it peaked at around 67%; MarexLME inventories up 5,475 mt to 1,213,400 mtMarket weakness has moved slightly down the curve because of the cancellations of spot month and May tonnage.

Third quarter/fourth quarter spreads have been trading flat and are now trading closer to 0.20 cent/lb.

The market is starting to see that metal being rolled into 2021.

The Calendar 2021 strip traded 11.75 cents/lb, also up 0.15 cent/lb, with 540 lots trading on the week. Calendar 2021 now trading at even a stronger contango than last week holding around 0.45 cent/lb.

(S&P Global Platts)

• [Editor:王可]