A bleak outlook for downstream demand, impending backwardations in the forward curve on the London Metal Exchange and general economic uncertainty helped drive bearish sentiment and stifle spot business at Fastmarkets' recent aluminium conference in Athens.
Although the Fastmarkets International Aluminium conference is typically a hub for aluminium participants to negotiate and sign contracts for the following year, spot liquidity was exceptionally low this year.Very few deals were concluded during this year's conference in Athens, several sources told Fastmarkets, which makes the forthcoming LME Week in October all the more important. "Compared to previous years, absolutely nothing was done this year in terms of European contracts - it was so quiet and everyone was a bit depressed," a European trader said. Some deals for 2020 on a fixed duty-unpaid Rotterdam premium basis were heard at around $100 per tonne and fixed deals on a duty-paid basis at around $155 per tonne. A lack of demand, stemming from global macroeconomic uncertainty, was one of the key reasons for the bearish sentiment at the conference."Everyone's depressed but it doesn't mean there'll be no business for next year. I...