Rotterdam duty-unpaid premium declines to $95-105 per tonne
MJP participants expect premium to drop
Cif dup Brazilian main ports falls to $150-165 per tonne
US Midwest premium stable.
Backwardations batter European premiums
Aluminium premiums throughout Europe fell, with persistent backwardations from November to January spurring aggressively lower deals and offers in the markets.
Fastmarkets assessed the benchmark aluminium P1020A premium, in-whs dup Rotterdam, at $95-105 per tonne on October 8, down from $100-105 per tonne the week before, with a spot deal and offers reported below the $100 per tonne level.
Although the LME cash/three-month spread remained at a narrow contango of $5 per tonne Tuesday, spreads in November and December were in backwardation.
The November to three-month spread was at a $7.25 backwardation, while December to three-month was at a $10.50 backwardation on Tuesday at 14:30 London time.
Backwardations force premiums lower because it makes it more expensive for some participants to carry stock,...