Aluminium premiums were mostly stable globally during the week ended Tuesday August 27, with participants shifting their focus to longer-term contract negotiations. But the recovery recently seen for Rotterdam material was spreading throughout Europe.
Rotterdam uptrend pushing European premiums up
Main Japanese port (MJP) premium flat; focus goes to quarterly contracts
Premium in United States’ Midwest steady ahead of longer-term negotiations
Brazilian participants getting ready for annual contracts
European premiums mostly steady with slow return to market
Fastmarkets’ assessment of the aluminium P1020A premium, in-whs dup Rotterdam, was $100-110 per tonne on Tuesday, unchanged since August 14 and still a more than 14-month peak.
The wide London Metal Exchange cash/three-month contango remained supportive of higher premiums throughout Europe.
“There’s more activity in the unpaid market and that has been driven by the contango,” one trader in Europe said.
Although spreads are favorable for traders holding metal at the moment, some remain wary of narrower spreads in the coming months. The cash/three-month spread was trading at a $28.25-per-tonne contango at Tuesday’s 5 pm close.
“The spreads aren’t so compelling that I would actually want to go long,” a second…