"Decade-high ocean freight rates, high inland truck rates, logistical bottlenecks, mudslides (in Canada) and snow storms have seen the costs of delivering aluminium skyrocket," said Jorge Vasquez, founder of consultancy Harbor Aluminum. The premium has rallied toward the costs of replacing metal sold or consumed. "The forward curve shows U.S. aluminium premiums rising over the next few months and staying at elevated levels until December, while those for Europe are expected to stay high until September next year.Physical market premiums in Europe stand at $179 a tonne, up nearly 40% since last November. "The challenges of restocking and restarting fabricating capacity are common themes we hear across markets from steel to semiconductors. "Rising premiums are a means the spot market seeks to rebalance by attracting units out of financing deals," Citi said.

Source: Economic Times March 22, 2021 16:28 UTC