[ferro-alloys.com]CME Group's AUP Midwest aluminum premium forward curve held steady this week, although some spreads tightening slightly, as the market awaits the possibility of tariffs on imports from Canada and also eyes the supply overhang not just in the US but globally.

The futures contracts traded on CME Globex and CME Clearport and settle on a monthly basis, based on Platts' US Aluminum transaction premium.

The CME July contract settled at 9.174 cents/b on July 13, up 0.174 cent/lb from July 6 on a 0.25 cent/lb uptick in the Midwest spot premium.

"We are starting to see forwards trending slightly higher," a broker said.

August settled 0.25 cent/lb higher on the week to 10.10 cents/lb, with 555 lots trading.

The August-September strip traded 10.60 cents/lb on July 10, down 2.65 cents/lb from two weeks earlier.

The August-Calendar 2021 spread traded at 1 cent/lb contango, tighter from last week as some forward conviction buying has come out of the Calendar 2021 strip, with 120 lots trading.

"With the global surplus, it's hard to see forwards holding their rallies unless we get more news on tariffs," a trader said.

**AUP total volume was 4,030 lots or 100,750 mt, for the week that ended July 10. Open interest finished the week at 36,852 lots on July 10, up 2,324 lots from the July 2 close.

**Spot to six months spread settled at a 2.923 cents/lb contango.

**Cash-three months spread on the London Metal Exchange settled at a $33.50/mt contango on July 13.

**Cash-December 2020 settled at a $51.50/mt contango.

**Net speculative short position on the LME contracted to 11% of open interest as of July 9 settlement: Marex

**Canadian exports of P1020 or better to the US were up 151.4% year on year through May: Canada Statistics

**LME published May off-warrant stocks in the US were 110,995 mt, up from 67,367 mt in February.

The fourth-quarter strip settled down 0.10 cent/lb on the week at 11.40 cents/lb, with only 15 lots trading during the week.

The Q4 2020-Calendar 2021 spread has held recent levels of around 0.25 cent/lb contango.

The calendar 2021 strip saw the most volume during the week, trading down to 11.25 cents/lb before settling at 11.75 cents/lb and flat on the week on July 13, with 3,024 lots trading during the week.

The Calendar 2021-Calendar 2022 spread still sits around 0.25 cent/lb to 0.50 cent/lb.

(S&P Global Platts)

• [Editor:王可]