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 Spot MJP premium unchanged amid inactive trading due to holiday 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 driver behind the weakness in...

Published

Alice Mason

Karen Ng

Renato Rostás

Michael Roh

October 23, 2019

10:20 GMT

Singapore, London, New York, Sao Paulo