Asian aluminium premiums fall following global cues

Aluminium premiums in Southeast Asia have taken a hit, following global declines, and financing demand losing attractiveness.

Singapore in-warehouse assessments stood at $300-315 per tonne this week, down $5 on the previous week. “There are no bidders in the market and sellers want to get rid of stocks,” a trader said. The cash-to-three month spread on the London Metal Exchange stood at $13.25 on February 27, narrowing from $17.25 on February 2. Stocks of aluminium in LME warehouses stood at a six-year low of 3.9 million tonnes on Friday February 27. “Inventory financing trade has not been as attractive as it used to be and there has been softening in demand for that business,” Daniel Hynes, senior commodity strategist at ANZ, said. “Certainly the way in which other asset classes are moving, in terms...

Published

Deepali Sharma

March 03, 2015

14:54 GMT

Singapore