Aluminium foundry premiums were on divergent paths this month, with the US premium boosted by tight supply and European premiums continuing to tumble.
The foundry premium in Eastern Europe fell for the second month in a row. Demand in the automotive sector has been poor, and foundry is used in the production of alloy wheels.Fastmarkets assessed the Eastern European premium at $370-410 per tonne on Friday December 14, down from $390-440 per tonne on November 9. Deals were heard at $370 per tonne, the lowest level since December 2017. Traders linked the decline to the year-end trading lull."Automotive demand still isn't great and people do not have a great need for foundry at the moment," a trader said. "Plus it is nearly the end of the year and producers are beginning to wind down."Traders said more production in Eastern Europe is leading to extra supply in some areas. "There...