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...