Aluminium premiums across the globe were mostly unchanged amid low liquidity in the week to Tuesday October 6, with all eyes on the narrowing London Metal Exchange spreads.
Low liquidity for Rotterdam premiumsUS participants look to November for clarity on Canadian unitsEnd of the import quota in BrazilNorth Asia spot premiums unchanged on stable demand
Rotterdam flat; Spain, Italy catch up
Premiums in Rotterdam were static this week amid low liquidity as market participants sat back and watched developments in the LME spreads.
The benchmark cash/three-month aluminium LME spread narrowed to a $27-per-tonne contango from $31 per tonne last week. It is considerably narrower than the $37-per-tonne contango on September 25.
While market participants also had eyes on the December/January spreads, the December/three-month spread was most recently flat, with the ask at a $0.50-per-tonne backwardation.
"Everyone seems to be holding back now to see what the spread does. Nobody wants to buy any more stock, but at the same time, for now spreads aren't in the position you need to liquidate,"...