P1020A ingot delivered São Paulo region ($ per tonne)
midpoint of range
- Domestic premiums dropped, adjusting to the low level for imported metal; poised to fall further in the short term, sources said.
- Factors such as China’s slowdown, volatile spreads and excess of available metal weighed on premiums.
- Despite the weakness of aluminium demand in Brazil, activity picked up in the week and some large-volume deals were concluded (see trade log below).
- Brazil’s shrinking economy continues to hit the industry; sources report more lay-offs, high levels of idled capacity.
“It does not make sense for the metal to be so expensive within Brazil if one can import it at much lower levels. Whoever wants to sell now will have to adjust the premiums.” – Buyer
“The end-user demand remains nearly frozen, but even so eventually you reach a point when companies need to buy more metal. Activity improved a bit, but there are still a lot of people waiting to see what happens.” – Trader
- 24 tonnes of aluminium ingot sold at $470 per tonne, delivery not included, to be collected in two lots of 12 tonnes each
- Over 2,000 tonnes of aluminium ingot delivered São Paulo region sold at $265 per tonne premium
- 3,000 tonnes of aluminium ingot sold on a cif Brazil basis at $179 per tonne premium
* Please note that the information on these deals was received after this week’s pricing session was concluded.
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.