MESSE 2016: Aluminium billet 2017 offer prices drive buyers towards spot market

High producer offer prices for 2017 aluminium billet are driving consumers to increase their exposure to the spot market instead of booking long-term tonnages, buyers told Metal Bulletin at the MESSE 2016 conference in Düsseldorf on Wednesday November 30.

The rejection of long-term deals is leaving producers scrambling to secure business across Europe, delegates said. Major producers of 6063 aluminium billet are offering consumers a $10-15 contango per quarter for supply of tonnages next year on top of a premium of between $330-340 delivered in the Ruhr region of Germany, buyers said. This would make their total long-term contract price about $340-355 per tonne in the first quarter. Some have also been offered 60-day payment terms...

Published

Ian Walker

November 30, 2016

15:25 GMT

Düsseldorf