GLOBAL ALUMINIUM WRAP: Steady contango supports US, Asia, Europe aluminium premiums

Aluminium premiums in Asia, Europe and the United States found support on the back of a firm contango in London Metal Exchange spreads on Tuesday February 5.

Premiums increase in liquid European aluminium market. Spot activity accelerates in US market, while US Midwest premium rises. Aluminium premiums in Korea, Taiwan rise in quiet market. End of Rusal sanctions push Brazil premiums lower. Firm contango pushes European premiums up Aluminium premiums in Rotterdam on a duty-unpaid basis moved higher this week due to a wide contango in LME spreads and firmer buying demand. The contango in the LME’s cash/three-month aluminium spread widened to $23 per tonne on February 5 – with the nearby cash/March spread in $21.30 per tonne contango. Fastmarkets assessed the benchmark Rotterdam duty-unpaid in-warehouse premium at $70-80 per tonne on February 5, up on the high end from $70-75 per tonne last week. “The premium is well supported by the contango, there is no reason for people to sell their metal cheaply and liquidity is picking up,” a trader said. A deal was reported to Fastmarkets as high...

Published

Justin Yang

Alice Mason

Michael Roh

Renato Rostás

February 06, 2019

02:14 GMT

London, New York,