GLOBAL ALUMINIUM WRAP: Volatile LME spreads pressure Rotterdam premiums down; US premium firm in active market

Volatility in London Metal Exchange aluminium price spreads caused premiums in the Dutch port of Rotterdam to drop in the week to Tuesday October 20, while the US Midwest premium held steady amid continuing long-term contract negotiations.

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...


Alice Mason

Karen Ng

Michael Roh

Hui Li

October 21, 2020

05:13 GMT

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