Aluminium foundry premiums in Europe and the United States remain under pressure this month due to continuing weak demand in the automotive industry.
Foundry premiums in Germany fell 5% month on month and are down more than 16% from the start of 2019. In Germany, the premium for silicon 7 aluminium wheel alloys over London Metal Exchange cash prices delivered to the Ruhr region with 30-day payment terms declined to $350-370 per tonne on Friday March 8 from $370-390 per tonne the previous month. "It's a poisonous combination of reduced demand slightly with increased supply - it's the worst situation to be in," a trader said. Weak demand in the automotive sector is continuing to put pressure on foundry prices, with traders noting an increasing lack of demand for aluminium products. The removal of sanctions against Russian producer UC Rusal by the US Department of the Treasury...