Global aluminium premiums mixed; LME spreads in backwardation

Aluminium premiums were mixed globally, with premiums in China and the Unites States falling, while other regions were mostly unchanged.

  • US premium falls on dwindling demand, backwardation
  • China premiums drop with arbitrage to the region closed
  • Premiums in Korea, Japan flat with first-quarter negotiations starting
  • Brazil domestic premium increases following duty-free import quota renewal
  • European premiums flat with London Metal Exchange backwardation keeping premium muted
US premium sub-30 per lb for first time since July
US aluminium premiums finally fell on November 30 following persistent reports of sub-30-cent-per-lb premiums in light of dwindling end-of-year demand and a need to offload material due to backwardations on the LME.
Fastmarkets' assessment of the aluminium P1020 premium ddp Midwest US was at 26-30 cents per lb on November 30, down from 30-32 cents per lb on November 26.

One consumer said offers have been drifting lower recently - into the mid 20-cent-per-lb range - and were down by about 4 cents per lb from the start of November. One trader assessed the “volatile”...

Published

Thorsten Schier

Justin Yang

Renato Rostás

Liz Ng

Jinfan Yang

November 30, 2021

19:09 GMT

London, Shanghai, Sao Paulo, Singapore, New York