Duty-unpaid premium well supported
- Rotterdam duty-paid premium dips on LME spread volatility
- US Midwest remains at record high
- MJP premium static.
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.