EXCHANGE - CME AUP volumes surge as Midwest premium bounces

Tom Jennemanntom.jennemann@fastmarkets.comSenior North American Correspondent973-204-3383

Winter Park, Florida 25/01/2016 - Weekly trade volume in the CME Group's Aluminum MW US Transaction Premium (AUP) contract rose 81 percent week-on-week to 1,309 lots or 32,725 tonnes last week.

The contract's open interest rose 4.8 percent to an all-time record of 25,599 lots or 639,975 tonnes as of last Friday, according to CME data.

In terms of pricing, the AUP January settlement price closed at 8.945 cents per pound, up 3.8 percent week-on-week, while the February-December contract months all ended at 8.65 cents - up about 4.8 percent on average for each month.

The rally in the futures market coincides with an increase in physical market premiums. The spot US Midwest aluminium premium increased to 9.0-9.5 cents per pound ($198 per tonne) from 8.25-8.75 cents in the prior week, market participants told FastMarkets.

(Editing by Mark Shaw)

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