GLOBAL ALUMINIUM WRAP: US premium sets new all-time high; Rotterdam premiums resume climb

Aluminium premiums climbed in the United States and Europe on Tuesday July 27 on supply-side issues, while premiums in South America and Asia were mostly unchanged with liquidity thin in those regions.

  • US Midwest premium sets fresh high after Kitimat output cut
  • Rotterdam premiums continue to rise
  • Delivered Brazil premium flat in quiet conditions
  • Premiums stable across Asia on weak demand

US Midwest premium sets new all-time high after Kitimat strike
Fastmarkets assessed the aluminium P1020A premium, ddp Midwest US at 31-32 cents per lb on Tuesday, up by 1 cent per lb (3.28%) from the previous range of 30-31 cents per lb, where it had held since July 9.
Spot transactions were heard within this range. Some traders are offering higher than the range but have not concluded business at those levels.
Supply-side issues continue to drive the premium higher. A workers’ strike at Rio Tinto’s aluminium smelter in Kitimat, Canada, was the main topic of discussion in the market.
Rio Tinto has reduced production at the smelter to 35% of its 432,000-tonnes-per-year capacity because of the strike.

Published

Justin Yang

Alice Mason

Hui Li

Michael Roh

Liz Ng

July 28, 2021

02:29 GMT

New York