The price of aluminum you see quoted isn't the price almost anyone actually pays. The gap is called the physical premium — and in the U.S. in 2026 it's grown to more than 40% of the all-in cost of metal, a record. In this short, single-idea episode of The Metalist, host Gus Gardner breaks down what the premium is, what's inside it (freight, financing, regional supply and demand, and duties), and why a 50% Section 232 tariff has pushed the U.S. Midwest Premium to all-time highs and decoupled the American market from the rest of the world. By the end you'll know why the premium — not the headline price — is the truest read on whether metal is physically tight.

FURTHER READING / SOURCES (public)

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- CME Group — Hedging regional aluminum premiums: https://www.cmegroup.com/articles/2025/aluminum-premiums-2025.html

- S&P Global Platts — US Aluminum Transaction price explained: https://www.spglobal.com/energy/en/pricing-benchmarks/assessments/metals/us-aluminum-transaction-price-explained

- White & Case — US modifies Section 232 aluminum/steel/copper tariffs (2026): https://www.whitecase.com/insight-alert/united-states-modifies-steel-aluminum-and-copper-section-232-tariffs

- Fastmarkets — Aluminium P1020A premium, in-whs duty-paid Rotterdam: https://www.fastmarkets.com/commodity-prices/aluminium-p1020a-premium-in-whs-dp-rotterdam-dollar-tonne-mb-al-0004/

- LME — Aluminium premiums: https://www.lme.com/metals/non-ferrous/lme-aluminium-premiums