GLOBAL ALUMINIUM WRAP: US premium edges up on widening contango spread, other regions flat amid holidays

Aluminium premiums across the globe, barring those in the United States, were unchanged in the week ended Tuesday May 7 amid low liquidity due to holidays across Europe and Asia.

But the swinging of the London Metal Exchange’s nearby spread into contango sparked some bullish sentiment. Rotterdam unchanged but supported by nearby spread Japan P1020 premium flat following Golden Week holiday Low liquidity caps Brazilian market US Midwest premium ticks up on contango spread European aluminium premiums steady with return of nearby contango 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...

Published

Justin Yang

Alice Mason

Karen Ng

Michael Roh

Hui Li

Renato Rostás

May 08, 2019

04:01 GMT

London, Singapore, Hong Kong, New York, Sao Paulo