The premium for aluminium P1020A in Italy hit a three-year low in the week ended Tuesday November 26, while the premium in the United States continued to decline amid bearishness stemming from the persistent backwardation in London Metal Exchange forward price spreads.
US Midwest premium down by 18.4% since JanuaryEuropean traders still watching LME spreadsMJP participants focused on Q1 negotiations
US Midwest premium continues descent
Fastmarkets assessed the
aluminium P1020A premium, ddp Midwest US at 15-16 cents per lb on Tuesday, down from 15.5-16.5 cents per lb in the previous assessment on November 22.
The premium is down by 18.4% from where it started the year at 18.75-19.25 cents per lb. Demand for spot volumes remains weak, keeping transactional activity quiet.
Few buyers are seeking additional metal amid a widespread determination to draw down inventories.
While spot demand remains soft, lingering backwardations in nearby LME spreads are still prompting some sellers to offer steeper discounts to offload metal.
The December/January spread on the LME traded at a $13.50-per-tonne backwardation, where it has largely hovered around for the past week.
That makes holding...