Aluminum billet upcharges rise on input costs

Jan 24, 2014 | 03:30 PM | Michael Cowden

Tags  aluminum billet, billet upcharge, remelt, ingot, P1020, Midwest premium, scrap, automotive building and construction

CHICAGO — Aluminum billet upcharges have increased due to higher scrap and ingot premiums as well as expectations of solid first-quarter demand, according to market sources.

AMM’s spot Midwest 6063 extrusion billet upcharges have increased to 12 to 13 cents per pound from 11.5 to 12.5 cents previously.

"The scrap guys are squeezing at the same time that the ingot guys are squeezing, and the billet guys cannot take the hit," a source at one remelt billet producer and extruder said. "And if you get squeezed on the bottom, it’s going to push the price up at the top."AMM’s spot P1020 premium jumped to 20.5 to 21 cents per pound Jan. 22 from 19 to 20 cents a week earlier and 11.5 to 12 cents at the beginning of this month. Some billet industry sources said they were now paying a Midwest premium of 21 to 21.5 cents per pound, although it was not immediately clear if those figures were representative....

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