Rusal sanctions propel premiums across Europe to hit three-year highs
- Rotterdam duty-paid jumps 37% week on week as premiums hit three year highs
- MJP spot premium at highest since May 2015
- US premiums flat but clouded with uncertainty
Most premiums in Europe hit their highest levels since 2015, with the sanctions levied against Russian aluminium producer UC Rusal continuing to support the market.
“The markets are going completely mad,” one trader in Europe said.
The benchmark in-warehouse Rotterdam duty-unpaid P1020A aluminium premium
rose by 33% to $130-140 per tonne Tuesday April 17, a three-year high, up from $98-105 per tonne a week earlier.
A surge in liquidity and a continued scramble for non-Rusal material helped to push the Rotterdam duty-unpaid in-warehouse aluminium premium up. Banks are now willing to finance Rusal metal, if it can be proven that the material was on the secondary market before the sanctions...