Premiums for aluminium billet set or remained at all-time highs across the globe on Friday May 7, with tight supply and strong demand persisting.
United States
Fastmarkets assessed the
aluminium 6063 extrusion billet premium, delivered Midwest US at 20-22 cents per lb on Friday, steady since it
rose to a fresh all-time high on April 23.
Strong demand across extrusion end-use sectors and tight supply continue to buoy the premium. Most of that demand was heard to be coming from the construction and recreational vehicle sectors, but automotive demand was also said to be steady despite supply chain disruptions brought on by a semiconductor chip shortage. Some participants noted that extruders who serve several markets have shifted production away from automotive.
"Demand is very strong. Auto is still looking to build inventory rather than turn down demand. There are some signals that indicate they are nearing inventory limits," one producer said.
Said a second producer: "I think [building and construction] and RV is still very strong."
And a trader said, "I think some extruders...