ALUMINIUM FOUNDRY WRAP: Weakening automotive demand weighs on foundry demand; Germany premium falls

Aluminium foundry premiums were under pressure this month from weaker demand in the automotive industry, as the premium in Germany fell for the first time since February 2018.

Demand across the rest of Europe is steady for now.
The US Treasury’s decision to extend the wind-down period for Rusal contacts is also negating any bullish sentiment. On Friday October 12, the US Treasury extended the deadline for a second time - this time to December 12.
“The original extension [to November] was already clouding some bearish sentiment because people are becoming more confident that the sanctions will be lifted,” a trader said.

“There is tightness still, which is why we are at respectably high levels, but overall the demand is worrying. There is less...

Published

Kirk Maltais

Alice Mason

October 15, 2018

09:00 GMT

London, New York