11 MARCH 2015Business Recorder
South Korea buys 2,000 tons of aluminium paying the lowest premium
Edited by : AL CIRCLE
1 min read
South Korea has paid the smallest premium in more than a year to source aluminium, the results of a tender showed on Wednesday, the latest sign of intensifying pressure on premiums that is putting the operations of global producers under threat.
South Korea bought 1,000 tonnes of aluminium to be sourced from India and another 1,000 tonnes from Australia for May 24 shipment via two tenders closed on Tuesday, the state-run Public Procurement Service said on its website.
K Commodity Co Ltd won both bids by offering to accept premiums of $330 per tonne, CIF Incheon, over London Metal Exchange (LME) prices. The drop in premiums is likely to boost headwinds for aluminium producers, who receive the delivery surcharge on top of LME cash prices.
The drop represents a 7 percent fall from a $355 tender announced on Feb. 26, and is the lowest premium paid by PPS in more than a year, according to Reuters data.
South Korea bought 1,000 tonnes of aluminium to be sourced from India and another 1,000 tonnes from Australia for May 24 shipment via two tenders closed on Tuesday, the state-run Public Procurement Service said on its website.
K Commodity Co Ltd won both bids by offering to accept premiums of $330 per tonne, CIF Incheon, over London Metal Exchange (LME) prices. The drop in premiums is likely to boost headwinds for aluminium producers, who receive the delivery surcharge on top of LME cash prices.
The drop represents a 7 percent fall from a $355 tender announced on Feb. 26, and is the lowest premium paid by PPS in more than a year, according to Reuters data.
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