The global novel coronavirus (2019-nCoV) outbreak is putting bearish pressure on negotiations for the second-quarter MJP aluminium premium, according to market participants who told Fastmarkets they expect the premium to fall year on year.
The
second-quarter premium in 2019 settled at $105 per tonne, but
new offers heard today had been at $90 per tonne.
Earlier offers in the week were at $105 per tonne.
"It is extremely hard to justify a premium increase now frankly, with consumption being so low now, and demand is so, so little," a Singapore-based trader said.
Market outlook has already been
bearish for this year due to poor demand, but the coronavirus health emergency has further exacerbated the market situation, market participants said.
The number of coronavirus infections in Japan is about 207, according to statistics released daily by the World Health Organization.
Japan has also reported four deaths from the Covid-19, the disease that this strain of the coronavirus causes.
"The coronavirus is the main concern now because there are more and more patients," a Japan-based trader said.