Description
The LME Aluminum Premium/Discount (0-3) is a measure published by the London Metal Exchange (LME). It indicates the premium or discount at which aluminum is traded for immediate delivery compared to the three-month forward price. This index is used to gauge the supply and demand dynamics in the aluminum market, as well as to assess the cost of immediate versus future delivery. A premium indicates higher immediate demand or tighter supply, while a discount suggests lower immediate demand or excess supply.
The calculation involves comparing the spot price of aluminum with the three-month forward price. The premium or discount is derived from the difference between these two prices.
The LME Aluminum Premium/Discount (0-3) is updated daily, reflecting the latest trading activity and market conditions.