Aluminium market bearish on UC Rusal deadline extension

The US Department of the Treasury's decision to extend the deadline for US businesses to wind down dealings with UC Rusal until October 23, as announced in a statement on Monday April 23, may usher in short-term bearishness, according to market participants.

Aluminium prices on the London Metal Exchange have slipped from a nearly seven-year high in the past few days. The LME's three-month aluminium contract reached $2,587 per tonne ($1.17 per pound) on Thursday April 19, before falling to $2,450 per tonne ($1.11 per pound) on Friday April 20 and slipping further on Monday to $2,439 per tonne ($1.11 per pound). And after spiking in the wake of the sanctions against UC Rusal, aluminium premiums are expected to follow prices lower, sources said. Metal Bulletin’s assessment of the benchmark in-warehouse Rotterdam duty-unpaid P1020A aluminium premium held at a three-year high of $160 per tonne, where it has remained since Thursday April 18. American Metal Market’s assessment of the Midwest aluminium premium remained at 22-23 cents per lb, also a three-year high, where it has been since April 10. “The pullback on the immediate imposition...

Published

Kirk Maltais

April 23, 2018

22:58 GMT