GLOBAL ALUMINIUM WRAP: Aluminium premiums unchanged in quiet market conditions; market eyes narrowing contango

Aluminium premiums were steady across the globe in the week ended Tuesday July 9, but participants are keeping a close eye on the narrowing London Metal Exchange spread, which could put downward pressure on premiums.

  • European premiums unchanged due to weak demand 
  • MJP spot premium steady 
  • Brazilian market still bearish 
  • US Midwest premium static after July 4 holiday
Low liquidity keeps European premium unchanged
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,...

Published

Alice Mason

Karen Ng

Michael Roh

Violet Li

Renato Rostás

July 10, 2019

11:12 GMT

London, Sao Paulo, Shanghai, Singapore, New York