The sharp increase in aluminium premiums in the United States - in addition to the potential import tariff there - is putting the Brazilian market under upward pressure, but weak demand has kept spot premiums in check until now.
The US Midwest delivered premium hit its highest level since May 2015 this week and has risen by 16.4% thus far in January, to 10.5-11.5 cents per pound ($231.50-$253.50 per tonne), according to American Metal Market. Logistics concerns and the news that the Section 232 report on aluminium was delivered to US President Donald Trump have been the key drivers for the increase in the Midwest premium.Meanwhile, Brazilian premiums have remained largely stable since late 2017 - mostly due to the low spot market activity. Premiums for P1020A sold on a ddp S??o Paulo basis were at $230-240 per tonne, while premiums on a cif Brazil basis remained at $160-170 per tonne on Tuesday January 23.Domestic offers for a standard 100-tonne lot size were reported as high as $250 per tonne,...