The aluminium primary foundry alloy (PFA) premium in the United States climbed to an 18-month high on Friday February 12, while the premium in Eastern Europe also firmed on tight supply despite thin liquidity.
United States
Fastmarkets assessed the
aluminium primary foundry alloy silicon 7 ingot/T-bar premium, dlvd dup over P1020A Midwest at 9-11 cents per lb on Friday, up by 8.1% from 8.5-10 cents per lb last month.
The premium has matched its highest since July 2019.
Demand from wheel manufacturers remains sturdy, and supply is heard to be tight.
"People are stocking up because they don't want to be in a situation where they lose sales because they don't have inventory. The automakers are making sure they have ample supply of everything," one producer said.
A global chip shortage that has forced automakers to suspend production at some plants has not yet had a noticeable impact on primary foundry alloy demand. But some participants are nervous that the effects could trickle to this segment of the automotive supply chain.
"We haven't seen [a demand impact] yet, but...