Aluminum demand slows, but premiums hold steady

Physical aluminum demand has fallen back this week as higher prices and lingering economic uncertainty encourage most buyers to remain on the sidelines.

"It's definitely on the slow side," one domestic aluminum trader told AMM Wednesday. A second agreed. "This has not been an eventful week at all." he said.

Sources said higher exchange-traded prices are partially behind the slowdown. On Wednesday, three-month aluminum closed second-ring trade on the London Metal Exchange at $2,041.50 a tonne, up 3.3 percent from six-months lows of $1,976 a tonne last week.