Premiums increase in liquid European aluminium market.
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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...