Aluminium billet premiums in Europe and Thailand moved lower on Friday December 21 on weaker demand and bearishness due to news that the US Treasury Department intends to remove sanctions against UC Rusal in January, while the US and Brazilian premiums were flat amid a seasonal pause in trading.
European premiums tick lower on bearish view. Weak demand pressures premium in Thailand. US and Brazil premiums flat due to illiquidity.European billet premiums slipAluminium billet premiums in Europe fell amid the potential return to the market of Rusal material and waning demand, with most first-quarter orders fulfilled.The US Treasury Department announced on December 19 that it intends to remove sanctions against the Russian aluminium producer next month.Participants see the potential for an increased supply of Rusal billets re-entering the market in the coming months, and they expect Rusal to offer competitively to regain market share after being out of the market for most of 2018."When you look at it, people have fully stocked themselves for Q1, but they know by Q2 negotiations [that] Rusal could be back and prices will be a lot lower," a trader in Europe said. Said a second trader: "I think it's bearish, value-added product...