Aluminum billet premiums strike one-year high

May 17, 2012 | 04:19 PM | Suzy Waite

Tags  Aluminum, billet spot premiums, Glencore, Alcoa, Aluminium Bahrain, Alba, Norsk Hydro, Suzy Waite

NEW YORK — U.S. aluminum billet premiums reached a one-year high this week as producers and traders reported tight supply amid growing demand and continued outages.

"We are extremely busy. Bookings for July are coming in early," a billet producer told AMM. "Everyone seems to be scrambling right now for July metal."

A second producer agreed. "May and June are fully booked. We have some of our regular customers begging for more, but we just tell them ‘Sorry,’" he said. "I suspect July will still be tight."

Spot billet premiums have risen to between 12.5 and 13.5 cents per pound, up from the 12- to 13-cents-per-pound range reported in recent weeks and marking a return to highs last reported in May 2011. One producer even reported closing an uncharacteristic deal at as high as 13.7 cents per pound for July delivery.....

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