Thai aluminium billet market flat on sluggish demand recovery, elevated freight

A combination of hurdles to a recovery of demand, elevated freight rates and lower supply have capped premiums for aluminium billet in Thailand for the second time in three months.

Buyers continue to report a shortage of supply from producers in the market, though few were actively negotiating for cargoes.

Fastmarkets’ monthly assessment of the aluminium 6063 extrusion billet premium, cif Thailand was $465-485 per tonne last Friday October 22, unchanged from a month earlier. The premium had moved up by $85-105 per tonne on September 24.

The premium has been rising to new highs since April, when the quarterly main Japanese ports (MJP) benchmark premium was settled at $148-149 per tonne - its highest in six years.

On-site labor restrictions along with persistent Covid-19 outbreaks in several extruder factories in Vietnam and Malaysia continued to keep operating rates low in the recent weeks. Buyers were also reported to be delaying the delivery of...

Published

Liz Ng

October 25, 2021

09:23 GMT

Singapore