GLOBAL ALUMINIUM WRAP: Premiums fall in Europe, Brazil; sentiment sours

Aluminium premiums in Asia were stable this week following the conclusion of quarterly negotiations, while low availability of metal kept premiums in the United States steady, but a growing backwardation in London Metal Exchange spreads ignited a downswing in Europe and Brazil.

  • Rising bearishness pushes European premiums down.
  • US Midwest premium holds on tight supply.
  • MJP, South Korea premiums unchanged following quarterly talks.
  • Brazilian delivered premium gains amid delay catch-up, but import premium slides.
European duty-paid premiums drop to three-month low
Duty-paid premiums in the Dutch port of Rotterdam were under pressure this week after holders of stock turned bearish.
Fastmarkets assessed the aluminium P1020A premium, in-whs dp Rotterdam at $340-360 per tonne on Tuesday October 19, down by $15-20 per tonne from $365-380 per tonne a week earlier. The premium is now at its lowest since July.
“People don’t want to carry into the back[wardation] next year, [so those] with large stocks were looking to reduce their exposure,” a trader said.

Market participants had a close eye on LME aluminium spreads. Although nearby spreads were in contango, with the cash/three-month spread was last at a $19.75-per-tonne contango, further down...


Alice Mason

Renato Rostás

Liz Ng

Yasemin Esmen

October 20, 2021

02:34 GMT

London, New York, Singapore, São Paulo