Billet premiums dip on weaker demand
Nov 20, 2012 | 03:51 PM
| Suzy Waite
Tags
Aluminum,
billet,
Alcoa,
ABI,
Aluminerie de Becancour,
United Steelworkers union,
billet premiums,
Suzy Waite
NEW YORK — Aluminum billet premiums widened this week due to weaker demand and excess supply.
Billet premiums dipped to 11 to 13 cents per pound Tuesday, down from 12 to 13 cents per pound.
This marks the first time premiums have softened since July 2011.
Producers and consumers say that it’s likely just a typical year-end slowdown, although some fear it could be a sign of more sinister things to come.
“It’s quiet. Is it something more than seasonality? That’s the question,” a producer told AMM. “It certainly feels like heavy seasonality. But then again, people may be far more aggressive with inventory and inventory control.”
“There’s been some softening,” a second producer said. “Right now, spot (premiums) aren’t very high. There’s some available capacity.” ....
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