GLOBAL ALUMINIUM WRAP: Rotterdam duty-unpaid premium slides again amid bearish sentiment

The benchmark duty-unpaid premium in the Dutch port of Rotterdam has fallen for a fourth consecutive week, with persistent backwardations in London Metal Exchange forward price spreads continuing to fuel bearish sentiment in the market.

  • Rotterdam duty-unpaid premium falls for fourth week in a row
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  • US Midwest premium flat for the 11th straight week
  • Brazilian market succumbs to bearishness, premiums soften

Rotterdam duty-unpaid premium weakens again
Bearish sentiment continues drive premiums lower in Europe with traders keeping their eyes firmly on the backwardation in the forward LME spreads.
Fastmarkets assessed the benchmark aluminium P1020A premium, in-whs dup Rotterdam at $90-95 per tonne on Tuesday October 22, down by $5 per tonne from $95-100 per tonne a week earlier.
The duty-unpaid premium had declined to $90-100 per tonne on October 18.
“$100 per tonne is no longer achievable for most people. The demand is poor and when you look at the forward spreads it is a concern,” a trader in Europe said.

The backwardation in the November and December spreads on the LME remain the primary...


Alice Mason

Karen Ng

Renato Rostás

Michael Roh

October 23, 2019

10:20 GMT

Singapore, London, New York, Sao Paulo