Premiums, demand recover in Europe
Strong demand for aluminium billets across Europe pushed premiums across the region to their highest since April.
“We are back to levels seen before the Covid-19 pandemic took hold and really killed demand. The industry has restarted and billets are in demand,” a trader said.
Fastmarkets’ assessment of the aluminium 6063 extrusion billet premium, ddp Italy (Brescia region)
, moved up to $270-300 per tonne on Friday from $265-290 per tonne on September 18.
Sellers said that there was good demand from consumers in Italy and tightening supply.
When Covid-19 brought the automotive industry to a halt, a number of aluminium producers switched their output to P1020 material instead because there was little demand for value-added products.
“Billets are going nuts right now,” a second trader said. “It is the hottest trade in town, but we know it is a completely temporary thing.”
Market participants noted...