Benchmark Rotterdam duty-unpaid premium touches $100 per tonne for first time since June 2018
US Midwest duty-paid premium ticks higher on tight supply and wide LME contangos
MJP premium continues to hold firm, Asian premiums broadly stable
Rotterdam duty-unpaid hits level unseen since June 2018; Italy Al market liquidity spikes
Premiums in Europe moved up Tuesday April 8, with wide contangos on the London Metal Exchange continuing to drive the uptrend.
The benchmark premium for duty-unpaid P1020 aluminium in-warehouse in Rotterdam increased to $90-100 per tonne on April 9 from $87-97 per tonne last Tuesday, with most market participants saying a consistently wide contango on the LME is supporting the premium.
“Spreads are strong and people are not willing to sell,” one trader in Europe said. Contangos help support premiums because an expected increase in LME prices covers the cost of financing and rent, so buyers must raise their bids...