Europe market bullish on demand, contango
- Downstream demand helps support P1020 premiums in Europe
- Flat-rolled product demand, expensive scrap keep US premium strong
- MJP remains steady on buoyant domestic demand, high freight rates.
A combination of sustained consumer demand for P1020-grade material in Europe and the return of a contango to LME spreads has fueled bullish expectations for premiums
throughout the region.
Fastmarkets assessed the aluminium P1020A premium, in-whs dup Rotterdam
, at $110-118 per tonne on January 19, flat from the week before. Market participants said that an uptick in consumer inquiries, and spreads that incentivize holding metal, were keeping premiums well supported.
“I can’t see a bearish story for duty-unpaid [material] right now. I think the market only goes higher. If you look at all the factors, it’s supportive, and it’s very hard to argue against that,” a trader...