The easing backwardation in forward London Metal Exchange price spreads gave support to aluminium premiums across the globe this week, with the December-January spread narrowing from a $15 per tonne backwardation to $7.50 per tonne.
Rotterdam premiums gain support from easing backwardation in Q1 spreadsMJP premium range widens to $70-85 per tonneUS Midwest premium unchanged as backwardation fears loosenBrazilian market continues to digest general election result. Rotterdam premiums gain support from spreadsThe benchmark duty-unpaid Rotterdam premium held firm at $70-75 per tonne week-on-week, but narrowed upward on Tuesday October 30 following a widening of the range earlier in the week.The premium had moved down to $65-75 per tonne on October 24 due to continued pressure from backwardated December-January spreads, but this backwardation has since eased."The change in spreads late last week should provide some support to the premium. We have finally come out of the spiraling higher backwardations, and the easing showed a change in direction," a European trader said."Demand is still poor and there has been little business concluded, but premiums are supported above $70 per tonne...