Brazil’s aluminium premiums have fallen over the past week, affected by sluggish domestic demand and softening international markets. 

Metal Bulletin’s assessment for P1020A ingot delivered São Paulo region stood at $580-660 per tonne on Thursday February 27, considering a 100-tonne lot-size. 

This compares with $620-675 per tonne reported in the previous assessment on February 12.

Spot market activity remained very thin, according to sources, mostly limited to smaller volumes.

One market participant reported a deal concluded for 25 tonnes of ingot for $640 per tonne, delivered Northeast region.

Metal Bulletin has launched a weekly newsletter to enable the market to stay in touch with aluminium premiums. Contact Merrin Higgins (m_higgins@metabulletin.com) for more details. 

“Consumers are still stocked up, demand continues to be very weak,” one trader said.

One ingot buyer told Metal Bulletin that his company has enough metal to last them until April.

Seller’s stocks also remain high, affected by months of unusually sluggish demand.

“Stock levels are high and we are bracing ourselves for lower premiums,” one seller said, indicating $580 per tonne as the minimum acceptable price level.

“It has been very expensive to have this material stocked up. We bought it at a higher level than we would be able to get it today,” the seller added.

Premiums for importing aluminium ingot into Brazil have been falling, following the dynamics of global markets.

Metal Bulletin’s assessment for P1020 aluminium ingot sold on a cif Brazilian ports basis in minimum clips of 500 tonnes fell to $380-420 per tonne on Thursday February 26.

In the previous assessment, cif premiums were in a $420-450 per tonne range.

“Import premiums have been falling due to the global market,” one source said.

“Despite the drop, however, there is not much liquidity in the market,” the source added.

US Midwest aluminium premiums continued to slide this week, on increased pressure from imports on the domestic supply-demand balance.

As for European premiums, there was a sharp decrease in the week due to a scenario of high availability and scarcity of buyers.

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Danielle Assalve
danielle.assalve@metalbulletin.com
Twitter: dassalve_mb