GLOBAL ALUMINIUM WRAP: Rangebound LME spreads keep Rotterdam premiums steady; Asian rates flat

Aluminium premiums in the Dutch port of Rotterdam were flat in the week to Tuesday October 27 after recent volatility in London Metal Exchange price spreads eased, while rates in the United States and Japan were unchanged amid continued focus on long-term contract negotiations.

  • European spot market quiet; 2021 supply talks ongoing
  • US Midwest premium steady on continued contract talks
  • China arbitrage window opens again
  • MJP spot market quiet while South Korea market bustles

Rangebound contango leads to static European P1020 premiums

A rangebound contango in the LME cash/three-month aluminium spread led to a distinct lack of trading activity in Rotterdam this week.
Market participants say the LME cash/three-month spread, trading between $14 and $15 per tonne contango so far this week, is not wide enough to increase demand for aluminium in Rotterdam nor narrow enough to encourage aggressively low discounting – leading to relatively stable premiums in the region.
Fastmarkets assessed the aluminium P1020A premium, in-whs dup Rotterdam at $100-105 per tonne Tuesday, unchanged from a week earlier.

“There wasn’t even an inquiry this week, so I’m not surprised there’s not much change. The spread is an easy topic these days,” a...

Published

Justin Yang

Karen Ng

Hui Li

October 28, 2020

10:00 GMT

London, Singapore, Shanghai