Global aluminium premiums still mixed; LME spreads in backwardation [CORRECTED]

Aluminium premiums were mixed globally on Tuesday December 7, with main Japanese ports (MJP) and South Korean premiums softening, Brazilian premiums up, and Europe and the United States flat.

  • Premiums in Japan widen, South Korea down with mixed sentiment and low market liquidity
  • European premiums steady with London Metal Exchange backwardation
  • US premiums temporarily stable on minimal trading

MJP range widens, South Korean premiums softened
Fastmarkets assessed the aluminium P1020A main Japanese ports (MJP) spot premium, cif Japan, at $165-180 per tonne on December 7, the first revision in three weeks.

Several deals were reported at $130-140 per tonne, however they could not be independently verified by Fastmarkets.

A deal was concluded at $200 per tonne, with the trader also reporting other deals at the same level. However, $200 per tonne was not reflective of the current market, traders said.

The persistently diverged expectations in the market left several traders considering a wide range of premiums as “fully transactable.”

“Those who have covered their positions for December have no real incentive to offer at lower...


Chris Kavanagh

Justin Yang

Liz Ng

December 08, 2021

22:47 GMT

London, Singapore, New York