Expensive logistics, uncertainty about the recently announced Russian export tax and generally strong fundamentals pushed global aluminium billet premiums to fresh all-time highs in the week ended Friday July 2.
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European premiums up 'beyond imagination'
Aluminium billet premiums in Europe continued on a steep uptrend, with Russia's recently announced export tax adding further bullish sentiment to an already rising premium.
The Russian government has approved temporary duties on 340 steel and non-ferrous metals sold for export outside the Eurasian Economic Union (EAEU), which will take effect from August 1 until December 31 this year.
A significant amount of aluminium from Russia usually finds its way to the European market.
Some market participants had expected the uptrend in billet premiums to begin to cool in the summer months, but news of the export tax has changed market sentiment and outlook in recent days.
"Who would have thought we would...