US billet premium drops to all-time low
Fastmarkets’ aluminium 6063 extrusion billet premium, delivered Midwest US
- US premium at record low
- European traders holding onto $300 per tonne level
- Low spot demand in Brazil
- Thailand premium falls
, fell to 7-9 cents per lb on October 25, down by half a cent from the previously assessed range of 7.5-9.5 cents per lb on October 11.
The latest move brings the billet premium to an all-time low, which reflects billet producers' continued struggle to sell spot billet to extruders.
Extruders barely participated in the spot billet market this year after booking contract volumes ahead of the year that more than adequately met their 2019 supply requirements.
Although the spot market remains sluggish, market participants are engaged in long-term supply contract negotiations.
Sources told Fastmarkets that extruders are booking significantly lighter volumes in their contracts for next year to inure themselves...