Metals &Mining:Aluminum tracker,Smelter margins pressured as alumina bounces back

LME aluminum price decreased $11/t (0.4c/lb) or 1% MoM to $1,909/t($0.87/lb) through June, as higher global production continues to outpacedemand. DBe aluminum smelter margins lost~$58/t (3c/lb) in June.

    Aluminum is $274/t (12c/lb) or 17% higher than one year ago.

    Regional premia weakened through June with Midwest premium at 8c/lb(-14% MoM), European at 6c/lb (-11%) and Japanese at 5c/lb (-12%).

    Raw materials: Alumina posted first gain (+8% MoM) to $303/ton (+26%YoY) in 4 months as smelters ramped production. Bauxite ore remained at$49/t (+7% YoY). DBe alumina refining margins increased ~$23/t in June.

    Apparent demand: US May consumption +17% YoY to 443kt (-3% MoM),on higher net imports (+83kt YoY). Chinese apparent demand increased7% YoY to 2.6mt as production increased 6% to 2.8mt and net exportsdecreased 6% YoY to 229kt.