GLOBAL ALUMINIUM WRAP: Rotterdam premium inches up on tighter supply, LME contango spreads

The duty-unpaid aluminium premium in Rotterdam edged up on Tuesday January 7 on tighter supply and supportive spreads on the London Metal Exchange. Premiums outside Europe held their ranges, with markets quiet in the United States and Asia.

  • Rotterdam DUP ticks up on tighter supply
  • US Midwest premium flat in quiet market
  • Spot MJP premium steady on limited trading.

Tightness in Rotterdam pushes premiums higher

The duty-unpaid premium in Rotterdam continued to rise over the past week supported by tighter supply and the contango in LME price spreads.
Fastmarkets assessed the aluminum P1020A premium, in-whs dup Rotterdam, at $90-100 per tonne on Tuesday, up from $85-95 per tonne a week earlier.
No business was reported at prices of less than $90 per tonne over the week while the lack of available duty-unpaid cargoes helped to fuel the bullish sentiment.
“Everyone wants to buy,” a trader in Europe said. “It is a buyer’s market but people aren’t going to let go of their inventory cheaply.”

One deal was reported to Fastmarkets at a price as high as $104 per tonne, and a number of traders said that...

Published

Alice Mason

Karen Ng

Michael Roh

January 08, 2020

01:40 GMT

New York