GLOBAL ALUMINIUM WRAP: MJP falls to all-time low; premiums elsewhere flat to down

Weak demand conditions and lingering backwardations in London Metal Exchange spreads damped most regional P1020A premiums on Tuesday December 3, including the main Japanese ports (MJP) premium, which fell to an all-time low.

  • MJP premium falls to all-time low
  • Rotterdam premium ticks downward on LME backwardations
  • Brazil premiums soften on poor demand
  • US Midwest premium steady on holiday pause.
MJP spot premium falls to all-time low
Fastmarkets' assessment of the aluminium P1020A (MJP) spot premium, cif Japan fell by $5 per tonne week on week to $60-70 per tonne on December 3.
The premium now stands at its lowest since Fastmarkets began assessing the premium in 2012; the previous all-time low was an assessment of $60-75 per tonne, reached in December 2018.
Traders had shared lower valuations of the premium for nearly two weeks, putting downward pressure on premiums.
“It is very hard to trade above $70 per tonne now in the spot market, and this will be [the market] until the year-end,” a Singapore-based trader said.

Other market participants also cited the widening backwardations on LME spreads as a damping factor...

Published

Justin Yang

Karen Ng

Renato Rostás

Michael Roh

December 03, 2019

23:39 GMT

New York, Singapore, London, São Paulo