MJP spot premium falls to 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.
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...