The recent contango seen on aluminium cash-to-future spreads on the London Metal Exchange supported a limited uptrend in Europe during the week to Tuesday July 7, driving the Rotterdam duty-paid market higher, while premiums were unchanged in other parts of the world.
Rotterdam uptrend capped by weaker demandMJP premiums steady as focus remains on quarterly negotiationsLimited spot liquidity keeps US Midwest premiums stable
Rotterdam premium rises as contango returns
The recent contango resurgence on nearby LME aluminium spreads helped stoke further bullish sentiment and pushed the Rotterdam duty-paid premium higher on Tuesday.
Fastmarkets assessed the
aluminium P1020A premium, in-whs dp Rotterdam at $100-115 per tonne on Tuesday, up from $100-110 per tonne on July 3.
Participants have recently reported deals as high as $125-130 per tonne, citing a search in the market for units, with the emergence of a contango on forward spreads.
"We have received inquiries [and] there is an interest to take long positions. When the backwardation expires, premiums go up," a trader in Europe said.
But the uptrend potential was capped, with market participants pointing to poor fundamentals and a lack of demand from end consumers throughout...