GLOBAL ALUMINIUM WRAP: Rotterdam premiums up on LME contango; MJP, South Korean rates also rise

The benchmark duty-unpaid aluminium premium in Rotterdam reached a three-month high during the week, amid spreads in contango on the London Metal Exchange, which also supported an uptrend across Europe and Asia.

  • Rotterdam duty-unpaid premiums maintain upturn, with some settlements above $100 per tonne
  • MJP higher despite sluggish Japanese demand; recovery expected in February
  • US Midwest steady for fifth week in a row amid high stocks
  • Brazilian premiums unchanged as illiquidity persists in spot market

All eyes on duty-unpaid Rotterdam market
Persistent tight supply of duty-unpaid material and supportive spreads on the LME continued to push premiums higher in Rotterdam over the past week.
Fastmarkets assessed the aluminium P1020A premium, in-warehouse dup Rotterdam, at $95-100 per tonne on Tuesday January 14, narrowing upward by $5 per tonne from $90-100 per tonne last week.
The premium is now at a three-month peak and up from $85-95 per tonne at the start of January. But settlements have since been reported above $100 per tonne, with some deals concluding at $103 per tonne.

Some market participants expect spot premiums for duty-unpaid material in Rotterdam to...

Published

Alice Mason

Karen Ng

Renato Rostás

Michael Roh

January 15, 2020

03:02 GMT

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