LME April–May tightness intensifies again, tightening the Cash–3M contango to a three- week low
March 19, 2019
The April–May contango tightened today to an eight-month low of $1.50 per mton from $3.00 per mton on Friday. Meanwhile, the March–April contango widened to $11.75 from $11.50 per mton, and the May–3M contango eased to $7.75 from $7.50 per mton. As a result, the Cash–3M contango narrowed to a three-week low of $21.00 from Friday’s $22.25 per mton. At the current level, we estimate that the Cash–3M contango is barely attractive for cash-and-carry deals, even for the most competitive players (i.e., those with access to the lowest financing and storage costs).
More details in full report.