GLOBAL ALUMINIUM WRAP: Premiums mixed; US Midwest ticks down, Asia inches up

Aluminium premiums diverged between regions on Tuesday September 29, with the US Midwest premium continuing its decline, while premiums in Japan and South Korea ticked up with sentiment in Asia bullish.

  • US Midwest premium down; more discounts emerge
  • Rotterdam premiums pause upward trend
  • MJP, South Korea premiums edge up on stronger demand

US Midwest premium ticks down again
Fastmarkets assessed the aluminium P1020A premium, ddp Midwest US at 12.5-14 cents per lb on Tuesday, down 7% from 13.5-15 cents per lb a week earlier.
Many traders lowered their offers and valuations of the premium in the week leading up to Tuesday's assessment. A large-volume deal was also heard at a floating discount.
"I'm not surprised [with the discounts], because I think [traders] are long and will sell to move units," a trader in the United States said.
A second US-based trader remarked, “We’re seeing a huge amount of people willing to sell, and not many [consumers] willing to buy.”
And views of the premium continued to span a wide range amid lingering uncertainty surrounding Canadian aluminium.

Some participants...

Published

Alice Mason

Karen Ng

Michael Roh

September 30, 2020

03:04 GMT

New York, London, Singapore