European duty-paid premiums drop to three-month low
- 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.
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...