GLOBAL ALUMINIUM WRAP: European premiums hit one-year high; US market flat but tariffs gone

European aluminium premiums surged to a one-year high in the week to Tuesday September 15, Japanese and South Korean rates climbed steadily up and the US market was flat while tariffs on Canadian metal were suddenly removed.

  • European premiums buoyed by wide contango, tight supply and rising demand.
  • Improving sentiment on end-year trades boosts MJP spot and South Korean premiums
  • US premium flat but market surprised by shock removal of tariffs.

Contango, supply tightness help Rotterdam dup premium hit one-year high
Premiums throughout Europe climbed on Tuesday with a wide contango in London Metal Exchange spreads, tight supply and the gradual return of end-consumer demand continuing to stoke the uptrend.
Fastmarkets assessed the aluminium P1020A premium, in-whs dup Rotterdam, at $110-115 per tonne on Tuesday, up by $5-10 per tonne from $100-110 per tonne the week before. The increase brings the premium to its highest since September 18, 2019.
“Duty-unpaid is crazy,” one trader in Europe said. “[Everyone] called us asking, ‘do you have units to sell?’”

Tight supply of duty-unpaid units in Rotterdam continues to be one of the main drivers for the unpaid premium, with...

Published

Justin Yang

Karen Ng

Michael Roh

September 16, 2020

08:37 GMT

London, Singapore, New York