South Korea’s PPS aluminium tender premiums rise but still seen as low by market

The two latest aluminium tenders by South Korea’s Public Procurement Service (PPS) were awarded at premiums higher than the state agency’s previous tenders, but industry participants still consider the latest premiums to be low compared with current market levels.

The two tenders of 500 tonnes each are for high-grade aluminium ingots of London Metal Exchange-registered brands for delivery by May 31. Both were awarded to local trader Prowell Resources Corp.

One of the tenders for good western material – except that from China, India, Russia and Egypt – for delivery to Busan port was awarded at a premium of $80.20 per tonne, according to a PPS notice. The material to be supplied in the tender is non-duty free material and after including South Korea’s 1% import tax on aluminium metal, it would take the final premium to...

Published

Vivian Teo

March 21, 2018

10:44 GMT

Singapore