GLOBAL ALUMINIUM WRAP: Premiums steady across the globe on low demand, contango

Transport disruptions and dampened demand due to the novel coronavirus (2019-nCoV) pandemic kept aluminium premiums steady throughout the world over the past week, while the contango in the three-month/cash price spread on the London Metal Exchange encouraged market participants to hold on to metal.

  • Illiquidity persisted amid lockdowns across Europe keeping premiums unchanged
  • Asian markets waiting for quarterly negotiations to settle, with spot market uneventful
  • US sees discounted deal in an otherwise muted market amid coronavirus pandemic
European premiums flat on demand uncertainty
Aluminium premiums were mostly flat in an illiquid week of trading, while participants were mostly waiting to see how lockdowns and other disruptions throughout Europe might affect the physical market.
Logistics throughout Northern Europe continue to run, but at a higher cost and/or with more delays, most market participants said.
“For deliveries, we’ve had no cancellations of trucks; whatever we’ve booked is being done. There doesn’t seem like there’s a logistical disruption,” one trader said.
Fastmarkets assessed the aluminium P1020A premium, in-warehouse dup Rotterdam, at $100-110 per tonne on Tuesday March 17, unchanged from last week.

Participants reported little business and most focused on arranging logistics...

Published

Justin Yang

Karen Ng

Michael Roh

March 18, 2020

04:30 GMT

London, Singapore, New York