GLOBAL ALUMINIUM WRAP: Steady demand, return of contango keep global premiums up

Aluminium premiums were supported on Tuesday January 19 by steady downstream demand and the return of a contango on London Metal Exchange price spreads.

  • 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.

Europe market bullish on demand, contango
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...

Published

Justin Yang

Karen Ng

Michael Roh

January 20, 2021

05:56 GMT

London, Singapore, New York