Tight availability fuels European premium uptrend
- 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.
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,...