Supply concerns drive European aluminum premiums to highest level since June]
On Friday, October 2, European aluminum premiums surged to their highest level in nearly four months. Industry insiders attribute this spike to concerns that a potential reduction in U.S. tariffs on Canadian metal could lead to supply shortages in Europe. Data released on Friday showed that the front-month COMEX European duty-paid aluminum premium rose to $574 per tonne on Thursday—a 10% increase from the previous trading session and the highest level since June 8. While European supplies remain tight, the COMEX Japan aluminum premium—a benchmark for the Asian market—has fallen 35% since late July; it dropped to $226 per tonne this week, marking its lowest level since mid-March. In a recent report, the consultancy CRU noted, "Asian aluminum premiums are retreating as inventories build up and underlying demand remains weak." The firm added that new production capacity coming online in 2027 will first hit the Asian market, potentially exerting further downward pressure on prices.
