Bullish LME spread outlook boosts Rotterdam premiums
Aluminium premiums in Rotterdam rose for the first time in more than three months this past week, with a bullish outlook on LME spreads for January helping deals conclude at higher levels.
Fastmarkets assessed the aluminium P1020A premium, in-whs dup Rotterdam
at $75-85 per tonne on Tuesday, up by $5 per tonne from $70-80 per tonne a week earlier. The increase marks the premium’s first since early September.
The premium, which has been in decline for much of the fourth quarter of the year, had mostly been driven lower by backwardations on the LME.
A contango emerging in January LME spreads was cited as the chief driver for higher premiums in the region, which helped participants conclude deals as high as around $90 per tonne.
Most of those deals are reported to be for delivery in early January, where contangos are driving...