GLOBAL ALUMINIUM WRAP: Rotterdam, MJP premiums increase as contango re-emerges on LME

Aluminium premiums in Europe and Japan rose on Tuesday December 17, with the re-emergence of a contango on the London Metal Exchange throughout the first quarter of 2020 boosting sentiment.

  • 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.

Contangos continue to fuel premium rebound in Europe
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...

Published

Justin Yang

Karen Ng

Renato Rostás

Michael Roh

December 18, 2019

09:07 GMT

London, New York, Singapore, Sao Paulo