GLOBAL ALUMINIUM WRAP: US Midwest premium falls to 13-month low; premiums elsewhere flat on Easter holiday lull

An abrupt onset of discounting and weaker sentiment in the United States pushed the Midwest premium to a 13-month low, while premiums in the European, South American and Asian markets were flat amid a slowdown in consumption resulting from the Easter holidays.

US Midwest premium sinks to March 2018 levels Rotterdam premiums flat in quiet market Main Japanese ports (MJP) premium steady on illiquidity Brazil premium unchanged, trades thin US aluminium premium falls to 13-month low In the US, the P1020A Midwest premium fell to 18.5-19 cents per lb on Tuesday April 23, down from 19-19.5 cents per lb in the previous week’s assessment. The latest assessment range puts the Midwest premium at its lowest level since March 2018.Spot activity was quiet in the market with the long Easter holiday weekend weighing on demand. Some traders have been inclined to offer discounts to capture sales. “You have a dichotomy where traders want to keep [the premium] up but are giving discounts to move the metal,” a US-based trader source said. A secondary aluminium producer told Fastmarkets that he believes the premium has room to fall further, and is waiting for further declines before...

Published

Justin Yang

Karen Ng

Michael Roh

Hui Li

Renato Rostás

April 24, 2019

03:59 GMT

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