Voerdal insolvency could push aluminium premiums higher
May 08, 2012 | 10:30 AM
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The insolvency of the Klesch’s Voerde Aluminium (Voerdal) smelter in Germany could drive up European premiums, which are already at record highs, market participants said.
“Combined with the tightness on the London Metal Exchange, it will lead to higher premiums,” an analyst said.
Metal Bulletin’s daily European duty-unpaid aluminium premium settled at $148.40 per tonne on May 8, with business reported as high as $165 per tonne. The duty-paid premium rose to $205-225 per tonne on May 4 from $200-220 previously.
“Voerdal produced billet, foundry alloys and slab, so the premiums in those markets will come under more pressure [to rise] too,” a trader said.
Voerdal declared insolvency on May....
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