Unstable LME spreads push Rotterdam premiums down; 2021 supply talks begin
US Midwest premium steady on contract talks; tight scrap supply also helps
Brazil premiums unchanged in illiquid conditions
MJP spot market quiet, focus on 2021 negotiations
South Korean premiums flat amid stable demand
Europe watching LME spread movement
Aluminium premiums in Rotterdam fell week on week with volatile LME spreads exerting downward pressure.
Fastmarkets assessed the aluminium P1020A in-whs dup Rotterdam premium at $100-105 per tonne on Tuesday, narrowing downward by $5 per tonne from $100-110 per tonne a week earlier.
The premium is now down by 12% since the start of October, when it was at $115-120 per tonne, after coming under pressure from narrowing LME spreads. The LME cash/three-month aluminium spread flipped from contango into a $3.50-per-tonne backwardation on October 16.
“Duty-unpaid remains extremely spreads-sensitive. Last week the spreads looked awful and the...