Billet premiums have moved to a September 2015 high in Europe and remain at a 10-month peak in the USA, in stark contrast to P1020 premiums around the world, which have been steadily falling for some time.
Outright aluminium prices at $1,870 per tonne are also down some 3% since the start of the month and have fallen by around 5% from the year-to-date highs of $1,975 per tonne.
In supply news, despite problems at various smelters around the world this year, the impact on most markets has been muted. Qatalum – a joint venture between Norsk Hydro ASA and Qatar Petroleum – faced some logistical issues after Saudi Arabia, the UAE, Bahrain and Egypt cut transport links and severed diplomatic ties with Qatar.
After problems at Vedanta and Alba earlier in the year, it was thought that the world's physical aluminium market would come under pressure but there has been no evidence of this so far. Disruptions are also less likely...