GLOBAL ALUMINIUM WRAP: Broad uptrend persists on recovering demand, contango; US Midwest premium down

Recovering demand and a contango in the cash/three-month spread on the London Metal Exchange lent further support to the current worldwide aluminium premium uptrend during the week to Tuesday September 22.

  • Rotterdam premiums up amid tight supply, LME contango
  • US Midwest premium softens; quota injects uncertainty
  • Japanese domestic upturn pushes MJP higher
  • Brazilian premiums climb on continuous restocking

Aluminium premiums in Europe continue to edge up

Premiums climbed again throughout Europe on tight supply, and while a wide contango on the LME supported the uptrend.
Fastmarkets assessed the aluminium P1020A premium, in-whs dup Rotterdam at $110-120 per tonne on Tuesday, widening upward by $5 per tonne from $110-115 per tonne a week earlier. That brings the premium to its highest level since June 2018.
Duty-unpaid units remained difficult to source, with producers hesitant to ship into Rotterdam and holders of metal unwilling to sell at lower premiums due to the wide contango. Tuesday was especially liquid with deals between $116-118 per tonne heard.
“The last week was crazy, [market participants] all want unpaid,” a trader source in Europe said.

Similarly, the...

Published

Justin Yang

Karen Ng

Michael Roh

Renato Rostás

September 23, 2020

03:45 GMT

London, New York, Singapore, São Paulo