European premiums flat on sluggish January demand
Foundry premiums in Europe were unchanged month on month with weak demand in the area causing liquidity to dry up.
Fastmarkets assessed the Eastern European foundry alloy premium at $370-410 per tonne on Friday January 11. The premium had declined in November and December.
Demand in the automotive sector has been poor, and foundry material is used to produce alloy wheels.
Deals were heard at $400 per tonne, but with traders still bidding at $390 per tonne and below, the premium remains at its lowest level since December 2017.
“Things haven’t kicked off well at the start of 2019 - it's very quiet for foundry and the inquiries are almost non-existent,” a trader said.
Said a second trader: “Demand is poor and there is not any movement in prices. People are just holding back to see how things go and might return to the market later...