Contango eases bearish concerns in Europe
- Rotterdam premiums stable as previous concerns fade.
- South Korean premiums tick up; MJP flat in illiquid conditions.
- Higher import premiums break Brazil domestic market out of 16-week stasis.
- US Midwest premium unchanged for two and a half weeks.
Aluminium premiums in Europe were well supported this week, with market participants feeling more at ease after LME price spreads returned to a stable contango.
Fastmarkets assessed the aluminium P1020A premium, in-whs dp Rotterdam
at $100-115 per tonne on Tuesday, unchanged from a week earlier. Most of the liquidity centered on May 29, when deals were reported throughout the range.
A wider contango on the LME’s June/July aluminium spread was said to be one of the main factors supporting the premium. When the spread flipped into a brief backwardation last week, there had been concerns that it could push premiums slightly lower.