GLOBAL ALUMINIUM WRAP: Premiums up as bullishness beats backwardation

Aluminium premiums increased on Tuesday August 31 across the globe, with tight supply, an opened arbitrage window in China, and overall bullish sentiment providing market tailwinds and supporting all-time highs.

Premiums up in Rotterdam on insufficient supplyUS Midwest premium stable at record highPremiums rise in Shanghai amid wide arbitrage profitsImproved market sentiment drives MJP premiums upwardRotterdam P1020 premiums rise, shrug off wide backwardation
Rotterdam aluminium premiums rose over the week, with most market participants shrugging off wide backwardations in the cash/September and cash/three-month spreads on the London Metal Exchange.
Fastmarkets assessed the aluminium P1020A premium, in-whs dup Rotterdam, at $300-310 per tonne on Tuesday, up from $295-300 per tonne a week before.
Although liquidity remained relatively low, market participants reported small-tonnage transactions above the assessed price range. Offers mostly remained firm around $300 per tonne.

A lack of availability - due to high freight rates to Europe and with producers focusing on the smelting of value-added products instead of ingots - continued to drive the market. The tight supply helped the premium shrug off...

Smaller juniors still financed even in more cautious market

Gold stocks shrug off equity market decline on metal gain

Geopolitical risk outlook unclear after US election

Low valuations offer a cushion to mining sector

Polarized gold and iron ore moves, moderate aluminum and copper gains