The benchmark in-warehouse Rotterdam aluminium premium fell to its lowest since January 2010 on Thursday December 20, the day after after the US Treasury announced its intention to lift sanctions on Russian aluminium producer UC Rusal in January.
Fastmarkets assessed the duty-unpaid premium at $55-65 per tonne on Thursday, down from $60-75 per tonne the day before. Participants told Fastmarkets they were willing to sell metal at the bottom of the range, and others saw the market even lower - although uncertainty was clouding the outlook of premiums in the short term. The premium is now down over 60% from when the sanctions were first announced, initially pushing the benchmark P1020 Rotterdam duty-unpaid in-warehouse premium to $150-165 per tonne on April 19, its highest in around three years. "Of course premiums have crashed today. No-one knows where the market level is and it is all up in the air," a trader in Europe said. "Some inquires are coming in and tomorrow might be clearer." The treasury's intent to lift sanctions on Rusal and parent company En+ added further pressure on a European market already on a downtrend due to...