Platts
European physical aluminium premiums hold steady in range
Edited by : AL CIRCLE
2 min read
Demand in the European physical aluminium market is still weak with little market activity reported.
"It's very quiet and I haven't been talking to traders or suppliers," one European consumer said.
He said he was completely covered for December and had now booked most of his requirements for next year.
"There is not much change in our orders for next year, but volumes are slightly better," he said.
The consumer said premiums were currently around $285/mt plus LME cash on a duty-paid basis and at $225/mt plus LME cash for duty-unpaid material.
A second consumer said he had received some spot inquiries for January.
"We have some inquiries for January, small quantities, the odd truck load, but nobody is looking to do much business," he said.
He added that he had put in an inquiry to book some material for next year but had not heard back from the trader.
"I've quoted a price I'd be willing to buy for the first half of 2013 and am waiting for comments," he said.
The second consumer said premiums were round $280/mt plus LME cash on a duty-paid basis.
A trader said the spot market was quiet, but that he had seen an improvement in spot inquiries recently as consumers looked to make some year-end inventory adjustments.
PRICES FIRM BUT SURPLUS TO WEIGH ON MARKET IN 2013
Barclays said Friday that aluminium prices had risen strongly over the past month, up nearly 10% from their November low and at two-month highs.
It said this was mainly due to short-covering and fresh longs having been established.
"Fundamentals this quarter should be modestly tighter than previously expected, in part owing to ongoing delays to smelting capacity ramp-ups in northwestern China, alongside sequentially better-than-expected regional demand levels," it said.
The bank is forecasting a 1.7 million mt surplus in 2013, which will see an increase in the stock-to-consumption ratio in Q1 that could weigh on prices.
Platts premium assessment for duty-paid Good Western was unchanged this week at $280-295/mt, in-warehouse Rotterdam plus LME cash.
The premium assessment for duty-unpaid Good Western was also unchanged at $225-235/mt plus LME cash, in-warehouse Rotterdam, as was the premium for A7E at $225-235/mt plus LME cash, duty-unpaid in-warehouse Rotterdam.
"It's very quiet and I haven't been talking to traders or suppliers," one European consumer said.
He said he was completely covered for December and had now booked most of his requirements for next year.
"There is not much change in our orders for next year, but volumes are slightly better," he said.
The consumer said premiums were currently around $285/mt plus LME cash on a duty-paid basis and at $225/mt plus LME cash for duty-unpaid material.
A second consumer said he had received some spot inquiries for January.
"We have some inquiries for January, small quantities, the odd truck load, but nobody is looking to do much business," he said.
He added that he had put in an inquiry to book some material for next year but had not heard back from the trader.
"I've quoted a price I'd be willing to buy for the first half of 2013 and am waiting for comments," he said.
The second consumer said premiums were round $280/mt plus LME cash on a duty-paid basis.
A trader said the spot market was quiet, but that he had seen an improvement in spot inquiries recently as consumers looked to make some year-end inventory adjustments.
PRICES FIRM BUT SURPLUS TO WEIGH ON MARKET IN 2013
Barclays said Friday that aluminium prices had risen strongly over the past month, up nearly 10% from their November low and at two-month highs.
It said this was mainly due to short-covering and fresh longs having been established.
"Fundamentals this quarter should be modestly tighter than previously expected, in part owing to ongoing delays to smelting capacity ramp-ups in northwestern China, alongside sequentially better-than-expected regional demand levels," it said.
The bank is forecasting a 1.7 million mt surplus in 2013, which will see an increase in the stock-to-consumption ratio in Q1 that could weigh on prices.
Platts premium assessment for duty-paid Good Western was unchanged this week at $280-295/mt, in-warehouse Rotterdam plus LME cash.
The premium assessment for duty-unpaid Good Western was also unchanged at $225-235/mt plus LME cash, in-warehouse Rotterdam, as was the premium for A7E at $225-235/mt plus LME cash, duty-unpaid in-warehouse Rotterdam.
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