LONDON As the
year draws to a close, base metal premiums tend to stagnate as
activity levels fall and consumers head home for the holidays,
but aluminum has other ideas.
premiums climbed throughout the fourth quarter before settling
in early December at $255 to $275 per tonne for duty-paid
Consumers that had
held off buying in the hope of lower premiums ahead of the
London Metal Exchange changing its warehouse load-out rates
were forced to buy their volumes at the last minute when it
became clear that the premiums werent wavering.
The consumers got what
they needed, but traders are still keen on the light metal. A
lack of backwardations anywhere on the LME forward curve, as
well as continuing low interest rates, have maintained demand
for aluminum financing deals. There has been a spate of buying
in the last full working week of the year, and premiums have
The duty-paid aluminum
premium of AMM sister publication Metal
Bulletin rose to $270 to $290 per tonne Dec. 18 as traders
reported a flurry of business at higher levels. Duty-unpaid
premiums rose to $210 to $230 per tonne from $200 to $210 on
the same date.
Consumers, already feeling the pinch of increases to
premiums earlier in the fourth quarter, will be arriving back
in the office in the New Year to the news that premiums are up
another $15 per tonne since they left.
A version of this
article was first published by AMM sister publication Metal