ALUMINIUM BILLET WRAP 15/03: European premiums continue to plummet; US upcharge dips

Aluminium billet premiums in Europe and the United States moved lower on Friday March 15 due to continued weak demand, and the market remained quiet elsewhere.

Italian premium drops 4.5%. Long term contracts dominate Brazilian market. US spot market remains quiet. Asia yet to see Russian units.  Aluminium billet in Germany continues slide; premiums down throughout Europe Poor fundamentals and bearish sentiment pulled down European aluminium billet premiums on March 15. Fastmarkets assessed the premium for prime-quality billet delivered duty-paid on a spot basis into the Ruhr region with 30-day payment terms at $420-450 per tonne Friday from $430-460 per tonne the week before. The German premium - which is now approaching the $380-400-per-tonne level seen prior to the US government’s sanctions against UC Rusal last April - has fallen for three-consecutive weeks. The premium’s latest drop follows a 6% decline the week before. Macroeconomic concerns about weaker European automobile and industrial sectors, as well as a relatively oversupplied European market remain the main forces driving billet premiums lower. “It’s just a question of days or weeks [before premiums move below...

Published

Justin Yang

Alice Mason

Michael Roh

Renato Rostás

March 15, 2019

21:39 GMT

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