EXCHANGES - Quiet week for CME AUP after Harbor-related sell-off

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

Winter Park, Florida 20/06/2016 - The CME Aluminum MW US Transaction Premium (AUP) contract did not record any trades last week - participants took a breather following record volumes in the prior week.

During the week of June 6-10, a sizeable 3,597 lots or 89,925 tonnes of AUP traded following the pessimistic Harbor Aluminum Symposium in Chicago. Attendees at that conference expressed concerns about increasing supply, soft Chinese demand and high inventories.

These worries promoted some market users to place some bearish bets on medium- and long-term US aluminium premiums via the CME AUP contract, which moved into a backwardation.

The June AUP contract settled unchanged last Friday at 7.718 cents per pound while July through December closed 7.25 cents. Every month in 2017 is around 7.3 cents.

Even though there was no activity last week, AUP open interest is still at a record high of 29,029 lots or 725,725 tonnes.

(Editing by Mark Shaw)

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