Aluminium billet premiums in the United States, Germany and Spain firmed near two-year highs on Friday February 12 as demand outpaced supply in those regions. Premiums in Asia and South America were steady.
US billet premium jumps to March 2019 levelsEuropean premiums climb; third-quarter talks beginBrazilian billet premium steady despite higher dealsPremium flat in Thailand; freight costlyUnited States
Fastmarkets assessed the
aluminium 6063 extrusion billet premium, delivered Midwest US at 12-15 cents per lb on Friday, unchanged from January 29, but up by 42.1% since the start of the year.
The premium is at its highest since March 2019.
Deals spanned an extremely wide range, with some extruders paying a lofty premium to attain spot units.
Some extruders were heard to have contracted light volumes during late-2020 negotiations and are now finding themselves desperate for metal, with extrusion end markets performing well.
"Billet demand has been really good. Stocks are certainly lower," a US trader said.
Said a producer: "If you have it, you can name your price. The problem is nobody has it."
And according to a...