GLOBAL ALUMINIUM WRAP: MJP, Southern European, US premiums rise on strong demand, supply tightness

Aluminium premiums in Southern Europe, the United States and Japan rose on Tuesday November 3, while demand outpaced squeezed supply in those regions, overriding the backwardation in London Metal Exchange spreads.

  • Duty-unpaid Rotterdam premium down; Spain, Italy up
  • US Midwest premium up as Canadian flows slow
  • Stronger demand boosts MJP premium
  • Slower activity pressures Brazilian premiums down

South European aluminium premiums deviate from Rotterdam
Premiums for aluminium in Spain and Italy rose this week, deviating from a downtrend in Rotterdam premiums.
Fastmarkets assessed the aluminium P1020A premium, fca dp Italy at $190-195 per tonne on Tuesday, up by $10 per tonne from $180-185 per tonne a week earlier.
And the aluminium P1020A premium, fca dp Spain was assessed at $190-200 on Tuesday, up by $10-15 per tonne from $180-185 per tonne on October 20. The premium is at its highest since October 2018.

Regional supply shortages and higher risk in transacting metal in those markets have led to Italian and Spanish premiums increasing, while premiums in Rotterdam fell with more supply expected to arrive in the coming weeks and uncertainty due...

Published

Justin Yang

Karen Ng

Renato Rostás

Michael Roh

November 04, 2020

03:10 GMT

London, Singapore, New York, São Paulo