CRU: No overreaction in European premiums after sanctions

This week, the Rotterdam ingot duty-paid premium was assessed $10 /t higher at $295–310 /t, while the Rotterdam duty-unpaid premium was $2.5 /t higher at $215–225 /t. The German billet premium was assessed another $5 /t higher at $500–520 /t.

European ingot premiums have not reacted dramatically to the new sanctions on Russian metal by the UK and the U.S. last Friday. Instead, the trend that has seen ingot premiums gradually increasing over the past month continued this week. One contact did rightly mention that the impact will be bullish in the long-run as more Russian-made aluminum will need to be replaced and this is likely to increase even more self-sanctioning.