LME price back above $2,400 per mton as spreads tighten; EU EC rod premiums fall to 11-month lows

ALERT! –WIRE ROD.
 

1. LME price up amid trade deal optimism, hovering around the $2,400 per mton level.

LME 3M aluminum prices closed the session up 1.3% or $… per mton, to $… per mton. Meanwhile, LME Cash aluminum prices climbed by 2.2% or $… per mton, to $… per mton, outperforming today as nearby spreads tightened. Optimism about upcoming US trade talks with China initially supported LME prices today, while …

2. China’s aluminum prices declined to a new one-month low.

SHFE front-month aluminum prices closed today’s session down 0.6% at… yuan per mton, a fresh one-month low. Prices initially fell amid ongoing demand concerns before paring losses in after-hours to… yuan per mton, supported by…

3. ALERT! –WIRE ROD. GAP DOWN: EU EC rod premiums decline to as low as €… per mton.

EU full EC rod premiums gap down to 11-month lows as offshore supply competition for market share heats up. Canadian EC rod qualifications in Europe on-going.

4. LME Cash-3M contango tightens sharply to six-week lows, turns unsupportive of short-term cash-and-carry deals (bearish P1020 premiums).

The Cash-3M contango tightened to a six-week low of $… per mton (a 1.0% annualized yield) from $… per mton on Wednesday, as conditions tightened ahead of June. The May–June contango narrowed to $…

 

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