GLOBAL ALUMINIUM WRAP: Premiums well supported; LME spread volatility hits Rotterdam premium

Aluminium premiums across the globe were mostly unchanged in the week ending Tuesday May 11 on tight availability.

  • Rotterdam duty-paid premium dips on LME spread volatility
  • US Midwest remains at record high
  • MJP premium static.
Duty-unpaid premium well supported
Fastmarkets’ benchmark duty-unpaid Rotterdam aluminium premium remained at its highest since April 2018 in the week to Tuesday May 11.
The daily assessment of the aluminium P1020A premium, in-whs dup Rotterdam, was $190-200 per tonne on Tuesday, unchanged since April 22.
A lack of duty-unpaid material in Europe, high replacement costs due to expensive freight rates, and long queues at LME warehouses in Southeast Asia continued to keep the premium supported.
There was currently a 199-day queue to take aluminium out of LME Istim warehouses in Port Klang.
“There is still not a lot of duty-unpaid material in Europe, [so] there is no reason for the premium to go down - especially when you look at global premiums such as those in the United States,” a trader in Europe said.

Published

Justin Yang

Alice Mason

Karen Ng

May 11, 2021

20:45 GMT

London, Singapore