Aluminium spread volatility hits otherwise bullish sentiment

Spread volatility is tempering a more bullish outlook in the European aluminium market, and premiums have consolidated a month of gains in the past week.

Metal Bulletin’s European duty-unpaid aluminium premium stands at $100-110 per tonne – a 60% increase since the beginning of October – while the duty-paid premium is $150-180 – 50% up over the same period. “It has swung from a completely bearish sentiment at the Metal Bulletin conference [in September] to a much more upbeat outlook now,” a trader said. Strong demand has seen premiums rise over the past month, particularly from traders looking to lock in gains after the backwardation on the October-November contract ended. “Call any supplier and the typical answer is that they have to...

Published

Jethro Wookey

November 09, 2015

13:46 GMT

London