European premiums trend higher, shrug off nearby backwardation
- European market continues uptrend despite nearby backwardation.
- US Midwest premium drops to 22-month low on limited market transactions.
- MJP premium flat; Japanese demand still said to be poor, recovery expected in Q2.
Aluminium premiums in Europe continued an uptrend this week, shrugging off the backwardation seen in nearby LME spreads.
Fastmarkets assessed the aluminium P1020A premium, in-warehouse dup Rotterdam
at $100-105 per tonne on Tuesday January 21, up by $5 per tonne from $95-100 per tonne a week earlier.
A tight duty-unpaid supply situation in the port of Rotterdam is said to be supporting premiums, with some finding it difficult to purchase metal.
The cash/three-month spread, although narrower, remained in a $9-per-tonne contango on Tuesday, which allowed market participants to hold the metal and made less spot availability.
“People are just moving metal from smelters to LME warehouses to get a...