Billet premiums to slide into 2014: Lawlor

Sep 05, 2013 | 10:10 AM | Michael Cowden

Tags  Sapa, Sapa AS North America, Patrick Lawlor, joint venture, Norsk Hydro, Orka, billet, billet premium contract negoations

CHICAGO — Sapa AS North America sees opportunities in the automotive and building construction markets, but expects billet premiums to slide going into 2014 contract negotiations.

Billet premiums "increased substantially last year," but the market has "flattened out" this year as capacity was added, Patrick Lawlor, president of the North American wing of Oslo, Norway-based extruder Sapa AS said in an interview with AMM.

"We expect a bit of softening in billet premiums going into contract negotiations looking at next year," he said. "The extrusion market is down 1.5 percent this year, which is a bit unlike the situation going into the last contract negotiation season. And with more capacity coming onboard, we feel generally that there should be a downward pressure on billet premiums.

AMM’s billet premium is currently at a range of 10.75 to 12.25 cents per pound.....

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