Aluminium billet premiums rose in most regions on Friday September 25, with demand strengthening while sectors continued their recovery from Covid-19-related disruptions earlier in the year. The premium in the United States was steady, with fundamentals remaining mostly unchanged.
Premiums, demand recover in Europe
Strong demand for aluminium billets across Europe pushed premiums across the region to their highest since April.
"We are back to levels seen before the Covid-19 pandemic took hold and really killed demand. The industry has restarted and billets are in demand," a trader said.
Fastmarkets' assessment of the
aluminium 6063 extrusion billet premium, ddp Italy (Brescia region), moved up to $270-300 per tonne on Friday from $265-290 per tonne on September 18.
Sellers said that there was good demand from consumers in Italy and tightening supply.
When Covid-19 brought the automotive industry to a halt, a number of aluminium producers switched their output to P1020 material instead because there was little demand for value-added products.
"Billets are going nuts right now," a second trader said. "It is the hottest trade in town, but we know it is a completely temporary thing."
Market participants noted...