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.

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Published

Justin Yang

Hui Li

Renato Rostás

Michael Roh

August 12, 2020

04:34 GMT

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