High aluminum replacement costs drive up duty-unpaid market in Rotterdam

摘要

Aluminum premiums in Rotterdam moved up June 17 as the supply of available units kept tightening in the region. The market continued to shrug off the backwardation seen on the LME. Market sources reported that the shape of the front of the futures curve had reduced activity in Rotterdam rather than reducing premiums. “Most people who know what they’re doing are sheltered from the backwardation,” one trader said. “There won’t be many caught out in Europe, so premiums will hold.” Buyers were still on the lookout for sellers reducing their offers so were holding out for buying for July.