Market and product
European physical aluminium slow as seasonal holiday approaches
Spot demand in the European physical aluminium market remains weak withlittle market activity reported as the seasonal holiday approaches.
"There's nothing going on. Just a little end of year stuff," said oneEuropean trader.
The trader said that business had pretty much been completed for thefirst quarter now and that most market participants had closed their booksfor the year.
"Sales for the first quarter have dried up. We should some spot demandemerge in the second half of January. There's no change to premiums," thetrader added.
A producer said that premiums had weakened to the lower end of thecurrent range at the beginning of the weak as the Dec/Jan backwardationcontinued to trouble some market participants.
However, the producer said that the backwardation had now been flushedout now and premiums had maintained their range.
"Now everything is back to normal. The backwardation seems to havecompletely gone," he said.
The producer said that premiums were at $280/mt plus LME cash on aduty-paid basis and at $225/mt plus LME cash for duty-unpaid material.
"There is upside potential for premiums in the first half of next year.People thought that they might start to tumble with the recent backwardation.The fact that they didn't is a good sign for further strength," the producersaid.
A European consumer said that he had more or less finished for the year. "We have not done any fresh quantities in the past week," the consumersaid.
The consumer said that he would not be bidding for the online Rusaltender announced last week.
"We will not be putting in an offer. I know that they want a high numberfor that material," he said.
On December 14, Rusal said it was considering selling 300 mt of superhigh purity 3N8 grade aluminium for January-February delivery via an onlinetender.
Delivery of the material is either FOB St Petersburg, in-warehouseRotterdam or CIF Asian ports or another location at the buyer's choicesubject to Rusal's acceptance, the company said on its website.
The deadline for bids is December 20 and the name of the winner will notbe publicly announced, Rusal said.
However, Rusal reserves the right to publicly announce the winner'sprice/premium.
A second trader said that he had not done any business in the past week. He said that premiums were $280-290/mt plus LME cash on a duty-paidbasis and at $225/mt plus LME cash for duty-unpaid material.
Platts premium assessment for duty-paid Good Western was unchanged thisweek at $280-295/mt, in-warehouse Rotterdam plus LME cash.
The premium assessment for duty-unpaid Good Western was also unchangedat $225-235/mt plus LME cash, in-warehouse Rotterdam, as was the premium forA7E at $225-235/mt plus LME cash, duty-unpaid in-warehouse Rotterdam. Thepremium for A7E FOB St Petersburg remained at $200-210/mt plus LME cash.
"There's nothing going on. Just a little end of year stuff," said oneEuropean trader.
The trader said that business had pretty much been completed for thefirst quarter now and that most market participants had closed their booksfor the year.
"Sales for the first quarter have dried up. We should some spot demandemerge in the second half of January. There's no change to premiums," thetrader added.
A producer said that premiums had weakened to the lower end of thecurrent range at the beginning of the weak as the Dec/Jan backwardationcontinued to trouble some market participants.
However, the producer said that the backwardation had now been flushedout now and premiums had maintained their range.
"Now everything is back to normal. The backwardation seems to havecompletely gone," he said.
The producer said that premiums were at $280/mt plus LME cash on aduty-paid basis and at $225/mt plus LME cash for duty-unpaid material.
"There is upside potential for premiums in the first half of next year.People thought that they might start to tumble with the recent backwardation.The fact that they didn't is a good sign for further strength," the producersaid.
A European consumer said that he had more or less finished for the year. "We have not done any fresh quantities in the past week," the consumersaid.
The consumer said that he would not be bidding for the online Rusaltender announced last week.
"We will not be putting in an offer. I know that they want a high numberfor that material," he said.
On December 14, Rusal said it was considering selling 300 mt of superhigh purity 3N8 grade aluminium for January-February delivery via an onlinetender.
Delivery of the material is either FOB St Petersburg, in-warehouseRotterdam or CIF Asian ports or another location at the buyer's choicesubject to Rusal's acceptance, the company said on its website.
The deadline for bids is December 20 and the name of the winner will notbe publicly announced, Rusal said.
However, Rusal reserves the right to publicly announce the winner'sprice/premium.
A second trader said that he had not done any business in the past week. He said that premiums were $280-290/mt plus LME cash on a duty-paidbasis and at $225/mt plus LME cash for duty-unpaid material.
Platts premium assessment for duty-paid Good Western was unchanged thisweek at $280-295/mt, in-warehouse Rotterdam plus LME cash.
The premium assessment for duty-unpaid Good Western was also unchangedat $225-235/mt plus LME cash, in-warehouse Rotterdam, as was the premium forA7E at $225-235/mt plus LME cash, duty-unpaid in-warehouse Rotterdam. Thepremium for A7E FOB St Petersburg remained at $200-210/mt plus LME cash.
Source:http://www.platts.com/
