Fastmarkets assessed the duty-unpaid premium
at $55-65 per tonne on Thursday, down from $60-75 per tonne the day before. Participants told Fastmarkets they were willing to sell metal at the bottom of the range, and others saw the market even lower - although uncertainty was clouding the outlook of premiums in the short term.
The premium is now down over 60% from when the sanctions were first announced, initially pushing the benchmark P1020 Rotterdam duty-unpaid in-warehouse premium to $150-165 per tonne on April 19, its highest in around three years.
“Of course premiums have crashed today. No-one knows where the market level is and it is all up in the air,” a trader in Europe said. “Some inquires are coming in and tomorrow might be clearer.”
The treasury’s intent to lift sanctions on Rusal and parent company En+ added further pressure on a European market already on a downtrend due...