Low liquidity keeps European premium unchanged
- European premiums unchanged due to weak demand
- MJP spot premium steady
- Brazilian market still bearish
- US Midwest premium static after July 4 holiday
Aluminium premiums throughout Europe were steady this week due to low liquidity and lack of strong demand.
Fastmarkets assessed the benchmark aluminium P1020A premium, in-whs dup Rotterdam
at $90-100 per tonne on Tuesday, unchanged since May 31.
“The market is very quiet and it is quite depressing. We are continuing to offer just above the range but there is little interest from buyers,” a trader said.
Despite the lack of demand, a contango in the London Metal Exchange cash/three-month spread continued to support the premium at existing levels.
But the spread has narrowed considerably over the past week, causing some nervousness in the market. The cash/three-month spread was at $16.50 per tonne contango on July 9,...