GLOBAL ALUMINIUM WRAP: Contango continues to support global premiums; MJP Q2 negotiations taking place

Global aluminium premiums were little changed this week, with good support from steady market conditions, but premiums in South Korea moved higher due to low levels of inventory.

European traders happy to hold metal South Korean premiums move up on tight inventory Import uptrend and domestic discounts in Brazil US premiums steady. Contango still supporting European premiums London Metal Exchange price spreads continued to support premiums across Europe this week, with the contango wide enough for market participants to comfortably carry metal. The cash/three-month spread was $26.50 per tonne, with the nearby cash/April spread also supportive in a $17 per tonne contango. The spread highlighted the expected increase in prices which would cover the costs of financing and rent, so buyers must raise their bids to entice sellers to release metal. Fastmarkets assessed the premium for duty-unpaid P1020-grade material, in-warehouse Rotterdam, at $80-85 per tonne on Tuesday February 26, unchanged week on week. Deals were heard this week within the current price range but many traders were pushing for $90 per tonne, and there was some expectation that the...

Published

Alice Mason

Michael Roh

Hui Li

Renato Rostás

February 26, 2019

21:00 GMT

London; Shanghai; New York; São Paulo