ALUMINIUM FOUNDRY WRAP: European, US premiums tick lower on weak demand

Weak demand and bearish macroeconomic factors continued to pressure primary aluminium foundry alloy premiums lower in Europe and the United States on Friday August 9.

Fastmarkets assessed the aluminium wheel alloy silicon 7 ingot premium ddp Germany at $335-355 per tonne on Friday, down from $340-355 per tonne on July 11. The premium fell for the second straight month, with market participants attributing this month's drop to bearish macroeconomic indicators in July. Germany’s manufacturing Purchasing Mangers’ Index (PMI) was published at 43.1 in July. A reading below 50 indicates a contraction in German manufacturing activity. Less manufacturing activity reflects less end-consumer demand. “If you look at this [manufacturing PMI] data and which sectors it reflected, it was clearly the automotive sector in Germany,”...

Published

Justin Yang

Michael Roh

August 09, 2019

21:00 GMT

London, New York