GLOBAL ALUMINIUM WRAP: US premium slides to 25-month low; Asian, European markets drop on waning demand

Weakened demand amid a worsening novel coronavirus (2019-nCoV) pandemic caused most aluminium premiums around the world to drop over the past week, with uncertainty and lockdowns affecting logistics and consumer operations.

  • Virus uncertainty leads to steep discounts in US premium.
  • Markets in Asia down on weakened demand.
  • Coronavirus-related shutdowns, lack of liquidity pressure Europe premiums lower.
  • Brazilian premiums static.

US premium drops to 25-month low on virus uncertainty
In the United States, Fastmarkets assessed the aluminium P1020A premium, ddp Midwest US at 11.5-13.5 cents per lb on March 24, down by 2 cents on the low end and by 1 cent on the high end from 13.5-14.5 cents per lb previously and the premium’s first move since February 28.
The premium is now at its lowest point since February 5, 2018, when the assessment stood at 11-11.75 cents per lb.
Notably, that date was nearly a month before US President Donald Trump announced Section 232 tariffs in March 2018.

Uncertainty stemming from the coronavirus pandemic has dampened sentiment in the US market, particularly because it...

Published

Justin Yang

Karen Ng

Renato Rostás

Michael Roh

March 25, 2020

08:15 GMT

London, New York, Singapore, Sao Paolo