But the swinging of the London Metal Exchange’s nearby spread into contango sparked some bullish sentiment.
Rotterdam unchanged but supported by nearby spread
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Market participants expect aluminium premiums in Europe to rise after the cash/May spread on the LME swung to a contango $3 per tonne at the close of trading on May 7.
Still, for now the duty-unpaid premium for P1020 in-warehouse Rotterdam was unchanged at $80-90 per tonne Tuesday May 7 from a week ago, according to Fastmarkets’ latest assessment.
While more market participants reported premiums closer to the top end of the range because of the swing in the nearby forward curve, a lack of liquidity in the market and muted demand has kept the premium flat.
“The backwardation is disappearing but...