GLOBAL ALUMINIUM WRAP: Rotterdam premiums stay on uptrend but Asia, US unchanged

Aluminium premiums in Europe continued to buck the general trend in the week ended Tuesday January 28, rising further while premiums in Asia and the United States were static.

  • Rotterdam duty-unpaid premium climbs to highest since August
  • US Midwest premium holds at 23-month low
  • Domestic Brazil premium edges higher
  • Asia premiums static due to lunar new year holiday.

Tight availability fuels European premium uptrend
Premiums for aluminium in Europe continued to climb in a week of liquid trading after bullish price spreads were seen on the London Metal Exchange and with the persistence of tight supply in the region.
The aluminium P1020A premium, in-whs dup Rotterdam, rose to $100-110 per tonne on Tuesday from $100-105 per tonne the day before. The increase brought the premium to its highest since last September.
“Post-[the nearby backwardation], the carry is good [and] the Asia market is getting better,” a trader said.

Transactions were reported in the range of $105-111 per tonne on Tuesday, which helped to push the premium higher. Participants noted that deals above the range were for February delivery,...

Published

Justin Yang

Alice Mason

Renato Rostás

Michael Roh

January 28, 2020

21:54 GMT

London, New York, São Paulo