The mood is dull, fundamentals bearish, traders risk-averse

摘要

Aluminium premiums seem to have found a floor in Europe and the USA, at leastfor now. What’s happening is the wider contango has encouraged surplus supplyinto financing deals, which is enabling traders to lift premiums slightly. US Midwestpremiums were last at 8.5-8.75 c/lb, up from 8.25-8.50 c/lb previously. In Europe,duty unpaid premiums for in-warehouse Rotterdam are $115-135/tonne, up froma monthly average of around $105-126/tonne. The rise suggests floors may be inplace on either side of the Atlantic, but with the summer slowdown now here andwith oversupply remaining an issue, premiums may struggle to rise further unlesscutbacks are made.