Traders hope wider contango will lend support to Al premiums in weak Asian market

Traders seeking higher Asian aluminium premiums are hoping that a wider contango will support long positions, lowering nearby metal availability.

Premiums on a cif Japan basis were indicated at an average of $148 per tonne this week, down from $225 per tonne earlier, with no deals reported.
In South Korea, the state stockpiling agency, Public Procurement Service (PPS), awarded a tender last week to buy 2,000 tonnes of primary aluminium at $145 per tonne, down by $78 from the previous tender.

Market participants attributed the fall in premiums to panic...

Published

Deepali Sharma

May 26, 2015

18:19 GMT

Singapore