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Aluminum billet market ‘nuts,’ producers say

February 03, 2012 - 22:08 GMT Location: New York

KEYWORDS: Aluminum billet , billet premium , Alcoa , Zalco

After a sluggish mating season last year, the aluminum billet market has logged a sharp turnaround, with producers said to be receiving daily calls from customers looking for more metal.

A second producer confirmed the sudden pickup. "I’ve been getting phone calls virtually every day for billet. Business is starting out this year better than expected," he said.

Although business is typically decent at the beginning of the year, sources agreed that this January was busier than normal.

"We’re completely sold out through March. I have no capacity available to sell to anybody," a third producer said.

As a result, premiums have continued to trend upward to between 10.75 and 12.75 cents per pound from 10.5 to 12.5 cents previously. Although no deals had been booked at the higher numbers, at least two...

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