European premiums were steady this week, with the few deals, bids and offers reported heard within the current Platts ranges. And while news out of Brussels about an EU council agreement in principle over the unwrought aluminium import duty cut to 3% from 6% was met with cynicism by most market players, they did agree that in time it would have an impact on premiums for Good Western duty-paid material. But, most market sources said they did not expect the news to have an impact right away as the market would only really react to the duty cut once it was final. "Before it is in place I would hesitate to believe anything," a trader said.
The trader noted however: "This is the closest we have come so far and it should have an impact on premiums, but not immediately. People are suspicious." He said consumers were wary of holding back and waiting for a duty cut as they had been caught out before when they thought the implementation of the cut was imminent. An extruder said there would be a different ceiling on the duty-paid premium now, but it would take a while to filter through into the market. "Those who can wait to buy will, it can only get cheaper," he said, adding that he had booked material for April at $170-175/mt, in-warehouse Rotterdam, plus LME cash, this week and would not fix a premium for the full quarter. A producer said the current ceiling for duty-paid was at $210-220/mt, but with the 3% duty-cut, it would be $80 below that -- "the duty is an issue now, but have been fooled on the timing before."
He said he had sold paid at $190-210/mt this week and unpaid close to $60/mt.
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