The US billet upcharge hit another all-time high this week, fueled mostly by issues with suppliers getting material to buyers on time, combined with the continued absence of UC Rusal from the US spot market. Other premiums throughout the globe remained generally steady.
US billet premium rises on lessened 6063 availabilityThe US spot extrusion billet upcharge rose to a record high of 17-19 cents per lb on Friday June 15 from the previous assessment of 16-18 cents per lb, as market participants report increasing difficulty in obtaining spot 6063 billet from suppliers."[I'm] selling big lots through the end of year - 10 loads here, 20 loads there. I don't have much left,"one supplier said.Multiple sources reported issues with suppliers sending out deliveries to their customers on time. This has amplified the already-existing tightness due to the absence of UC Rusal Plc from the value-added aluminium market.According to a second supplier, extrusion customers have been reporting extended lead times for end products due to the inability to acquire enough billet to meet demand.Increased geopolitical turmoil following the United States' implementation of the 10% tariff on aluminium imports from Canada, the European Union and Mexico...