GLOBAL ALUMINIUM WRAP: LME contango bumps up US, Rotterdam premiums

Aluminium premiums in the US Midwest and in Rotterdam rose on Tuesday July 21 following a wide contango on the London Metal Exchange, while premiums in Asia were flat.

  • A wide contango and uncertainty about tariffs affecting Canada pushed the US Midwest premium to its highest since April.
  • Slightly bullish sentiment, contango continued to support premiums throughout Europe.
  • Premiums in Asia were steady following Main Japanese Ports (MJP) third-quarter negotiations concluded on Wednesday last week.

US Midwest premium at 3-month high
The US Midwest aluminium premium has jumped to its highest level since April 13, with traders raising their offers due to bullish sentiment on the premium and a wide contango on the LME’s cash/three-month spread.
Fastmarkets assessed the aluminium P1020A premium, ddp Midwest US, at 10.5-11.5 cents per lb on July 21, up week on week by 2 cents per lb from 8.5-9.5 cents per lb.
Spot-market activity remained thin, but some traders remarked that demand has picked up slightly.

Even with the spot market quiet, traders raised offers because the LME’s...

Published

Justin Yang

Karen Ng

Michael Roh

July 21, 2020

23:03 GMT

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