A combination of hurdles to a recovery of demand, elevated freight rates and lower supply have capped premiums for aluminium billet in Thailand for the second time in three months.
Buyers continue to report a shortage of supply from producers in the market, though few were actively negotiating for cargoes.
Fastmarkets' monthly assessment of the aluminium 6063 extrusion billet premium, cif Thailand was $465-485 per tonne last Friday October 22, unchanged from a month earlier. The premium had moved up by $85-105 per tonne on September 24.
The premium has been rising to new highs since April, when the quarterly main Japanese ports (MJP) benchmark premium was settled at $148-149 per tonne - its highest in six years.
On-site labor restrictions along with persistent Covid-19 outbreaks in several extruder factories in Vietnam and Malaysia continued to keep operating rates low in the recent weeks. Buyers were also reported to be delaying the delivery of...