US premium drops to 25-month low on virus uncertainty
- 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.
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...