Shanghai premiums up with arb window open
- Strong demand in China
- US Midwest premiums climb
- European participants focus on first quarter 2021
- MJP spot market static.
An open import arbitrage window, as well as strong demand in China, helped to push Chinese aluminium premium levels up on November 24.
Fastmarkets’ aluminium P1020A premium, cif Shanghai
, rose to $110-130 per tonne on Tuesday, up from $90-110 per tonne one month earlier.
“Profit could go as high as $135 per tonne now for some importers,” one aluminium ingot trader said. “It is not surprising to see cif aluminium premium offers move up to around $120 per tonne.”
Market participants said that there were active negotiations under way, with some cif offers as high as $130-140 per tonne for nearby shipment. Other deals were heard at $110 per tonne for cargoes in January.
China’s import arbitrage window for aluminium has been wide open...