European aluminium premiums high on contango
- Rotterdam duty-unpaid premium at highest since June 2018
- MJP premium flat due to lack of activity
- Midwest US premium remains untested.
Premiums in Europe were higher on August 20 compared than they were a week earlier, with a strong contango continuing to support the market.
Fastmarkets assessed the aluminium P1020A premium, in-whs dup Rotterdam
, at $100-110 per tonne on Tuesday, up from $95-105 per tonne one week earlier.
The corresponding aluminium P1020A premium, in-whs dp Rotterdam
, was assessed at $150-160 per tonne on the same day, up from $150-155 per tonne a week before.
Market participants said that a persistently wide LME cash/three-month spread, at around a $30 contango on Tuesday, was still the main factor driving premiums higher in Europe, especially the Rotterdam duty-unpaid.
The contango at those levels was enough for most market participants to cover carrying costs, and even to...