- Return of wider contango supports higher Rotterdam premium.
- MJP premium range narrows downward on low consumption ahead of Obon holidays.
- US Midwest steady at 16-month low amid illiquid spot market, wider contango.
Wider contango helps spur Rotterdam duty-unpaid premium higher
Premiums throughout Europe were higher on Tuesday July 23 after wider contangos in LME spreads spurred bullish sentiment throughout the region.
Fastmarkets assessed the
aluminium P1020A premium, in-whs dup Rotterdam, at $95-105 per tonne on Tuesday, up by $5 per tonne from $90-100 per tonne the day before. The premium had been steady at the previous range since May 31.
The premium is now at its highest since June 2018.
Partially driving the Rotterdam premium were the widening contangos on nearby and further forward spreads on the LME. The benchmark cash/three-month spread was at a $27.50-per-tonne contango on Tuesday, widening from a contango of $18.50 per tonne last week.
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