- US premium hits another record low
- Aggressive market conditions in Italy persist
- Brazil billet market quiet
- Thailand premium steady
US premium drops to all-time low
Fastmarkets’ aluminium 6063 extrusion billet premium, delivered Midwest US
, fell to 6-8 cents per lb on Friday November 22 from 6.5-8.5 cents per lb on November 8, with supply continuing to outpace demand.
Spot demand remains weak, with extruders maintaining their distance from the market as they have all year. Extruders had eagerly booked lofty volumes under their 2019 supply contracts, believing supply would be constrained. But supply was quickly replenished after an influx of overseas material.
The flood of overseas material, combined with contract volumes that surpassed extruders’ requirements, continues to pressure the premium downward.
“Nobody’s buying. The inventory hangover is massive. People overbought,” one trader said.
Negotiations for most long-term 2020 supply contracts have concluded, and the attached premium has...