Rotterdam aluminium premiums edge lower amid backwardation
- Eyes on virus outbreak in Italy.
Improved demand in Brazil.
Lower consumption pushes South Korean premiums down.
Premiums static in the United States.
Aluminium premiums in the Dutch port of Rotterdam edged lower on Tuesday, following the emergence of an intermittent backwardation in the LME’s aluminium April/May spread and bearish sentiment surrounding physical demand due to the outbreak of novel coronavirus (2019-nCov) in the region.
Fastmarkets assessed the aluminium P1020A premium, in-whs dup Rotterdam
at $100-110 per tonne Tuesday, down by $3-5 per tonne from $105-113 per tonne a week earlier
The April/May spread, trading as wide as a $1 per tonne backwardation on Tuesday afternoon in London, was the primary driver for the move for most participants. A backwardation makes it costlier for some participants to hold on to metal and incentivizes them to liquidate metal.
“April/May could be...