Contangos continue to fuel premium rebound in Europe
- Rotterdam, Italy premiums tick higher after contango re-emerges.
- Spot MJP premium rebounds to highest since the start of November.
- Brazil premiums fall in quiet market.
- US Midwest premium holds steady ahead of holidays.
Aluminium premiums in Europe continued to increase this past week, with LME spreads in contango for most of the first quarter the main reason behind rising bullish sentiment and deals for January delivery concluding at higher levels.
The benchmark LME aluminium cash/three-month spread traded at $16.75 per tonne contango at 3.18 pm London time on Tuesday. The spread has helped support physical premiums in the past two weeks.
Fastmarkets assessed the aluminum P1020A premium, in-whs dup Rotterdam
at $80-90 per tonne Tuesday, up from $75-85 per tonne a week earlier.
“The premium reflects the market post-backwardation [in January],” one trader source in Europe said, referring to...