Aluminum pricing can be tricky. The LME screen price isnt always what you pay, as basis risk, tariffs, and premiums can all affect final costs.
Sometimes aluminum prices aren’t aluminum prices. Sounds crazy, right? But it’s true.
The price on the LME screen isn’t the price you pay. Published prices and premiums only tell part of the story. There are many significant basis risk factors that are hard or impossible to hedge against. In fact, the published prices you are buying against may not be tied at all to any financial hedging instrument. These are open secrets people don’t know - but they need to know the tricks to mitigate risk.
Do you want to better understand what drives aluminum pricing? Pricing mechanics are not always straightforward, but managing your aluminum price exposure starts with understanding how aluminum is priced in the first place. If the questions below ring a bell, Gary Borner’s “Aluminum 101” is for you!
Gary Borner spent 8 years on the London Metal Exchange Aluminum Committee and in this brief presentation he outlines the mechanics of aluminum pricing. If you would like a more in-depth explanation, and specific recommendations on how you can better manage your commodity exposure, Gary may also be available for 1 on 1 sessions.
Congratulations to our Director of Supply Chain, Renee Toy, on being named president of the Institute of Scrap Recycling Industries (ISRI) Upper Midwest Chapter.
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Spectro Alloys President Luke Palen commented on domestic aluminum recycling in a Wall Street Journal article titled Aluminum Scrap Abounds Thanks to Tariffs. It discusses how changes in global trade have impacted U.S.
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Spectro Alloys recently hosted a 50th anniversary celebration, bringing employees, friends, and family together.
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