P1020A ingot delivered São Paulo region ($ per tonne)
midpoint of range
P1020A ingot on a cif Brazilian ports basis ($ per tonne)
midpoint of range
-Brazil's domestic ingot premiums remained flat on the week, influenced by the behaviour of US Midwest premiums, industry sources said.
-After having fallen nearly 30% from this year's high, domestic premiums now seem to be close to the their "correct" value, according to various sources interviewed by Metal Bulletin.
-The number of transactions in the country's spot market remained very limited, although has increased from previous weeks.
-Brazil's economic and political crisis continues to limit activity.
-Ingot import deals have been also affected by uncertainties concerning the renewal of the import tariff exemption that ends in mid-August.
-Most believe that the government will soon announce the renewal of the exemption, but two buyers said they will wait until there is a clear indication of this happening before they commit to new deals.
"We do not intend to move domestic premiums [downwards] any more this month, as premiums abroad have stabilised. We could reduce it at most by $10, [or a] maximum of $20 to a very good client, but that is the very limit for the business to make sense for us."
"There is some concern about whether the government will renew the import tax exemption. We believe [the government will], but since there is no clear indication yet, this might [continue to restrict] the import market."
"It is telling to see that even with the possibility of a non-renewal of the import tax exemption, there is no rush at all from buyers to secure volumes. Stocks are still high and demand remains weak."
100 tonnes of ingot delivered São Paulo region sold at $490 per tonne.
75 tonnes of ingot delivered São Paulo region sold at $420 per tonne.
36 tonnes of ingot sold at $470 per tonne, delivery not included.
For previous 2015 aluminium trade logs, please click on the relevant month:
Click here for Metal Bulletin’s P1020A ingot delivered São Paulo region premium specifications.
Click here for Metal Bulletin’s P1020A ingot sold on a cif Brazilian ports basis premium specifications.