Strong correlation between CME Group and LME aluminum markets with historical arbitrage opportunities

From CME Group: 2025-02-11 13:00:10

The correlation between CME Group and LME aluminum markets remains strong, but arbitrage opportunities are still available. Historically, the differential between the two markets has ranged between $40 premium and $30 discount. In 2024, the differential reached as high as $80 discount, offering significant arbitrage potential.

From July 2019 to December 2024, the average CME Group-LME differential has been around $3.75 premium on a settlement basis. This data highlights the potential for traders to take advantage of price differences between the two markets.



Read more at CME Group: CME Group Aluminum Correlation and Differential to LME 3m Aluminum