Aluminium premiums in Rotterdam continued to have support over the past week from wide contango spreads on the London Metal Exchange, while premiums in Asia, the United States and South America were generally stable amid a lack of buying interest in the spot markets.
Rotterdam premiums ticks higher on LME contango Premiums in Japan, South Korea lower on mounting supply China premium steady on lack of liquidity US premium holds in quiet spot market Brazil duty-paid premium flat, market sluggishEuropean premiums climbAluminium premiums in Rotterdam moved higher in the week ended Tuesday February 12 with support from a strong contango in price spreads on the London Metal Exchange.The contango in the LME's cash/three-month aluminium spread widened to $28.50 per tonne at the end of trading on February 12, with the nearby cash/March spread in a $19.29 per tonne contango.Fastmarkets assessed the benchmark Rotterdam duty-unpaid in-warehouse premium at $75-85 per tonne on February 12, up from $70-80 per tonne a week earlier."The contango is strong and people can hold their metal [in the hope of] stronger numbers. Offers to sell are rising, and the spreads are very supportive," a trader said.Deals were heard at...