Physically-settled LME Aluminium Premiums are contracts designed specifically to help the physical industry hedge the premium portion of the “all-in” aluminium price.
There are four physically settled premium contracts:
- LME Aluminium US Premium
- LME Aluminium West-Europe Premium
- LME Aluminium East-Asia Premium
- LME Aluminium South-East Asia Premium
The physically-settled contracts provide a transparent, supply-and-demand-driven premium price discovery mechanism. Participants can also take delivery of readily available material in non-queued warehouses.