European aluminium premium hits highest since June on supply concerns
XLB•The European duty-paid aluminium premium rose 10% to $574 a metric ton, its highest since June 8, as sources cited concerns that a potential cut in US tariffs on Canadian metal could tighten European supply.
1. European premium rises
The front-month COMEX European duty-paid aluminium premium climbed to $574 a metric ton on Thursday, up 10% from the previous day and its highest since June 8. The premium is paid on top of benchmark London Metal Exchange aluminium prices for physical metal.
2. Tariffs and trade flows
The European premium has risen in recent weeks amid reports that the US could halve its 50% tariff on Canadian aluminium imports to 25%. A cut could allow more Canadian metal to flow to the US. EU imports of aluminium from Canada rose 80% year on year in January-July to 269,839 tons as the bloc sought to make up for shortfalls from the war-hit Middle East.
3. Asia premium falls
The COMEX Japan aluminium premium fell 35% since the end of July to $226 a ton this week, its lowest since mid-March. CRU said Asian premiums were retreating as inventories build and underlying demand remains weak, and that new capacity in 2027 would reach Asia first. Three-month LME aluminium fell for a fifth day on Friday, touching $3,105 a ton, its lowest since July 7.
