Continued tightness in aluminium supply and improved demand have sparked another sharp increase in aluminium premiums in Europe, for both primary metal and value-added products.
The benchmark
aluminium P1020A premium, in-whs dup Rotterdam increased to $120-128 per tonne on Friday February 19, up by 3.77% from $117-122 per tonne the previous day and the highest level since reaching $120-130 per tonne in late-May 2018.
Deals within the $120s-per-tonne range have been consistently taking place in the market over the past few days, with the lack of unpaid units in Rotterdam continuing to fuel the rally.
High freight rates and continued container shortages are also limiting units arriving in Europe.
"I never thought I'd see $120-128 per tonne in a non-sanction time," a trader source said, referring to the rise in premiums caused by the
United States' sanctions against Russian aluminium producer Rusal in 2018.
The Rotterdam premiums are...