European aluminium billet premiums on Friday August 30 traded at their lowest since late 2016 and early 2017, pressured by a sustained oversupply in the region.
Oversupply, aggressive offers sink premiums in Europe.
Brazilian billet premium falls on weak demand.
US, Asian billet premiums steady.
European premiums hit by sustained oversupply
European billet premiums hit their lowest since 2016 following a supply glut that has yet to fade.
“It’s a slaughterhouse in Europe right now. At least there are no postponements, but fresh tonnage is pouring into Europe,” one trader in Europe said.
Fastmarkets assessed the aluminium 6063 extrusion billet premium, ddp North Germany (Ruhr region) at $330-350 per tonne on Friday, down from $350-370 per tonne the week before. The decrease puts the premium at its lowest since December 2016.
Market participants attributed the drop to sustained oversupply of billet from exotic origins and bearish macroeconomics in Germany.
“The exotic billets are back and now everyone is aggressive with their offers. The demand the next couple of months is very low and everyone is trying to secure billet…