GLOBAL ALUMINIUM WRAP: US tariffs drive Midwest premium up; MJP, Rotterdam flat

Global aluminium premiums were unchanged to higher on Tuesday August 11, with the US Midwest premium soaring following the reintroduction of Section 232 tariffs on Canadian metal, while a contango on the London Metal Exchange provided broad support to premiums elsewhere.

  • Record spike in Midwest premium after reintroduction of US tariffs on Canada.
  • Rotterdam flat while participants watch tariff developments.
  • MJP steady ahead of quarterly negotiations.
  • Brazilian premiums recover on increased buying interest.

US Midwest premium logs record jump after Canada tariffed
Fastmarkets assessed the aluminium P1020A premium, ddp Midwest US at 16-17 cents per lb on Tuesday, unchanged since it climbed to this range on August 7, but up by 5 cents (43.5%) from 11-12 cents per lb on August 4.
The premium’s jump on August 7 was the largest upward movement for the premium since Fastmarkets began assessing the price in 2003. The current range is now at its highest since mid-November 2019.
Small-tonnage deals were heard within the current assessed range. Some large-tonnage deals were also heard below that range, but most participants did not see those premium levels as being repeatable.

Offers and valuations of...


Justin Yang

Hui Li

Renato Rostás

Michael Roh

August 12, 2020

04:34 GMT

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