The persistent widening backwardation on the July/August spread has pushed aluminium premiums in Rotterdam to their lowest this year, with bearish sentiment sweeping the market.
The benchmark Rotterdam duty-unpaid P1020 aluminium in-warehouse premium has fallen to $85-95 per tonne on Friday June 29 from $90-100 per tonne assessed on June 19, which held for 10 assessments. This is over 40% lower than the high of $150-165 per tonne achieved in April after the sanctions announced against Rusal.As premiums moved back to pre-sanction levels after sanction hysteria calmed, a strong backwardation...