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...