Wide contangoes on the London Metal Exchange were supporting global aluminium premiums on Tuesday February 19, with premiums in Europe, the United States and Japan all rising.
Contango on LME offsets slow demand for duty-unpaid metal in Europe.Market participants in Asia expect higher premiums on wide spreads.US Midwest premium increases week-on-week in liquid market.Brazil aluminium premiums mixed, with participants fighting over market share. LME contango pushes aluminium premiums upWide contangoes on spreads on the London Metal Exchange were one of the key factors pushing aluminium premiums in Europe higher on February 19.The cash/three-month spread was at a $34 per tonne contango on Tuesday, close to its widest levels so far in 2019, having touched $35 per tonne February 15.Contangoes are generally supportive of premiums because an expected increase in prices covers the costs of financing and rent, so buyers must raise their bids to entice sellers to release metal.Fastmarkets assessed the Rotterdam duty-unpaid P1020 in-warehouse premium at $80-85 per tonne on Tuesday, compared with $75-85 per tonne a week ago."The...