GLOBAL ALUMINIUM WRAP: Nearby LME backwardation pushes European aluminium premiums down; US, Asia flat

Aluminium premiums in Europe were pressured by a nearby backwardation on the London Metal Exchange in the week ended April 30, while premiums in Japan and the United States were flat and those in Brazil were mixed.

Rotterdam and Italy premiums lower week on week. Japan P1020 premium flat with Golden Week holiday. Brazilian cif import premium follows Rotterdam lower. US Midwest remains at 15-month low. Nearby backwardation puts European aluminium premium under pressure Aluminium premiums in Europe edged lower on the week, with nearby London Metal Exchange spreads in a sustained backwardation and demand from consumers muted. Fastmarkets assessed the benchmark Rotterdam P1020 in-warehouse duty-unpaid premium at $80-90 per tonne Tuesday April 30, down from $85-95 per tonne a week ago. Premiums had been largely supported by trader-to-trader demand amid a contango on LME spreads earlier in April. But that demand and the nearby contango have disappeared - the cash/May LME spread is now in a $10 backwardation. “We’ve seen some material offered quite cheap - the backwardation is playing its role here,” one trader in Europe said. But while the cash/three-month spread remains in a contango, some participants are waiting to see whether the...

Published

Justin Yang

Karen Ng

Michael Roh

Hui Li

Renato Rostás

May 01, 2019

11:15 GMT

London, Singapore, Shanghai, New York, Sao Paulo