Battle ahead in aluminum billet contract talks

Aug 16, 2013 | 05:13 PM | Michael Cowden

Tags  Aluminum billet, contract negotiations, 2014, spot, premiums,

CHICAGO — Billet contract negotiations for 2014 could be difficult as the outlook clouds just as talks begin and spot premiums slip on weaker-than-expected demand and abundant metal availability.

AMM’s billet premium range dropped to 10.75 to 12.25 cents from 11 to 12.50 cents previously.

"At the moment there is surplus metal," one consumer source said. "And when you look at overall demand, it’s not as strong as some people had hoped it would be." Producers may try to hold the line in the face of increased costs, but the market—and not costs—ultimately determine premiums, he said.....

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