US Midwest premium shoots up by almost 10%
- US Midwest premium jumps to fresh all-time high
- Premiums in Europe tick up on supply tightness
- Main Japanese ports (MJP), South Korea premiums steady on thin liquidity
Fastmarkets assessed the aluminium P1020A premium, ddp Midwest US
at 34-35 cents per lb on Tuesday, up by 9.52% from 31-32 cents per lb on July 27.
Spot activity remains limited, but market participants did not believe that deals were achievable below the new assessment range. Some traders have offered material at premiums a few cents higher than the assessment range, but none have reported spot business done at those levels yet. Still, many expect the premium to soon hit 40 cents per lb.
Sentiment continues to be bullish, especially in light of the output cut at Rio Tinto’s Kitimat smelter and the Russian export duties that came into effect this week.