GLOBAL ALUMINIUM WRAP: Most global premiums flat-to-up ahead of anticipated Rusal reprieve, narrowing spreads

Aluminium premiums across the globe were mostly flat-to-up in the week ended Tuesday January 22, after narrowing spreads on the London Metal Exchange and anticipation surrounding UC Rusal’s reentry injected caution into most markets, dampening spot activity.

Rotterdam premiums slow gains MJP premium halts climb, South Korean premiums rise Brazil premiums mixed on diverging trends US Midwest premium flat on illiquidity Narrowing spreads, Rusal developments dry liquidity in European market A narrowing contango in the LME’s cash/February spread, as well as expectations of Rusal metal returning to the market has capped aluminium premiums throughout Europe. Fastmarkets assessed the benchmark Rotterdam duty-unpaid in-warehouse P1020 premium at $70-80 per tonne Tuesday January 22, up by $5 per tonne from $65-75 per tonne the week prior. The Rotterdam duty-paid premium was assessed at $120-135 per tonne on January 22, also up by $5 per tonne from $115-130 per tonne on January 15. The duty-unpaid premium rose on January 17 on the back of wide contango spreads on the LME, with the cash/three-month spread closing at $13.75 per tonne that day. But the spread narrowed to a $1.75-per-tonne contango on January 22. Still, the narrowed spread...


Justin Yang

Michael Roh

Hui Li

Renato Rostás

January 23, 2019

01:47 GMT

New York, Shanghai, London, Sao Paulo