European premiums drop amid LME backwardations
- Backwardation pressures Rotterdam
- Main Japenese Ports (MJP) flat amid focus on first-quarter negotiations
- United States steady; market split on lower deals
European aluminium premiums fell in the week to Wednesday November 24, although participants remain divided on market direction following recent volatility on the forward LME spreads.
The majority of business remained focused on duty-paid units. Fastmarkets assessed the aluminium P1020A premium, in-whs dp Rotterdam
at $280-300 per tonne on Tuesday November 23, down from $290-310 per tonne one week earlier.
The premium is down by $92.50 per tonne since the start of October, with the market coming under pressure from end-of-year sell-offs and LME backwardations.
"The backwardations are just an acceleration of a trend that already exists," one European trader said, "and we are going to see a normalization in premiums between now and the first quarter."
The December 2021 to...