Risk of Aluminum Squeeze Grows as Key Price Spread Tightens

A key aluminum spread that’s been the focus of recent intervention by the London Metal Exchange surged into backwardation, signaling the LME market may still be at risk of a squeeze as the main June contract expires next week.

The contract traded as much as $10.15 a ton above July on Tuesday, after many weeks during which the spread had been capped at zero, or “flat.”