TREE NEWS reports: Aluminium buyers on the London Metal Exchange face the tightest supply squeeze in decades after LME warehouse stocks fell to their lowest level since 1990. On November 11 the cash price traded at a $147-per-tonne premium to the exchange’s three-month benchmark, the widest in more than 30 years of data, flipping from a discount in mid-October. Two traders now hold most of the remaining warrant stock.
LME aluminium cash premium hits record $147/t as stocks slump to 1990 low
AI take
The record cash premium is a structural signal, not just a price move: with LME stocks at 1990 lows and two traders holding most remaining warrants, the market's buffer against disruption has effectively collapsed, and the flip from discount to premium in under a month shows how quickly physical tightness can reprice the curve. That matters most for consumers hedging on the exchange and for the LME's own credibility on market integrity, given the concentration of warrant holdings. Whether the squeeze draws out latent stocks or persists into the next contract cycle is the open question.
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