The consistent wide contango in London Metal Exchange price spreads pushed aluminium premiums in Rotterdam higher in the week ended Tuesday August 20, while premiums in South Korea declined because of poor demand.
Rotterdam duty-unpaid premium at highest since June 2018 MJP premium flat due to lack of activity Midwest US premium remains untested.European aluminium premiums high on contangoPremiums in Europe were higher on August 20 compared than they were a week earlier, with a strong contango continuing to support the market.Fastmarkets assessed the aluminium P1020A premium, in-whs dup Rotterdam, at $100-110 per tonne on Tuesday, up from $95-105 per tonne one week earlier.The corresponding aluminium P1020A premium, in-whs dp Rotterdam, was assessed at $150-160 per tonne on the same day, up from $150-155 per tonne a week before.Market participants said that a persistently wide LME cash/three-month spread, at around a $30 contango on Tuesday, was still the main factor driving premiums higher in Europe, especially the Rotterdam duty-unpaid.The contango at those levels was enough for most market participants to cover carrying costs, and even to generate a profit for some. That...