Contango, supply tightness help Rotterdam dup premium hit one-year high
- 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.
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...