GLOBAL ALUMINIUM WRAP: Weak demand pressures global premiums; LME backwardation hits rates in Southern Europe

Global aluminium premiums were under pressure this week, with rates in Southern Europe, Brazil and Southeast Asia falling while illiquidity kept premiums elsewhere flat.

  • Southern European premiums drop due to backwardation; rates in Rotterdam pressured by oversupply.
  • Brazilian import premium declines on muted demand.
  • Southeast Asia premiums slide on slack demand; MJP holds steady.
  • US Midwest premium unchanged on tariff uncertainty.

Backwardation hits Southern European markets; Rotterdam premiums flat
A lackluster Rotterdam market and nearby backwardation on the London Metal Exchange pressured premiums in Southern Europe lower this week.
Fastmarkets assessed the aluminium P1020A premium, fca dp Italy at $140-150 per tonne on Tuesday June 30, down by $5 per tonne from $145-155 per tonne a week earlier. The aluminium P1020A premium, fca dp Spain was at $145-155 per tonne on Tuesday, widening downward by $5 per tonne from $150-155 per tonne on June 16.
The LME’s cash/July aluminium spread was most recently at a backwardation of $8 per tonne.

Aluminium premiums in Rotterdam were unchanged this week, with the market continuing...


Alice Mason

Karen Ng

Hui Li

Renato Rostás

Michael Roh

July 01, 2020

06:36 GMT

London, Sao Paulo, New York, Shanghai, Singapore