ALUMINIUM FOUNDRY WRAP: US, European premiums supported by Rusal uncertainty

Uncertainty about the fate of US sanctions against UC Rusal Plc have kept aluminium foundry alloy premiums up in the United States and Europe, with sellers able to wield control of 2019 supply contract negotiations thanks to buyers' dwindling inventories.

US premium supported by supply woes The US foundry alloy premium remains at 14-15 cents per lb, with market participants confirming that suppliers are able to charge a higher premium due to the belief that US Department of Treasury sanctions against Rusal will not be lifted any time soon. According to market participants, suppliers in the US have little capacity available for spot volumes, which is at odds with buyers who possess little foundry in their inventories. It is one reason why contract premiums for 2019 are expected...

Published

Kirk Maltais

Alice Mason

September 14, 2018

23:12 GMT

New York, Berlin