European aluminum billets rose in dollar terms

Aluminum billet prices rise in Europe on stronger euro and strong year-over-year demand

“Recently, the strong exchange rate of the euro against the US dollar is one of the reasons why some of the billets are being sold at a premium of $ 400 per tonne,” explained one of the traders.

In addition, this year, demand has been particularly strong in Central Europe. According to manufacturers, contract negotiations began earlier this year than usual. “There are already people who are trying to order metal for the 4th quarter and even for the 1st and 2nd quarters of 2018,” the manufacturer specifies. According to him, this level may still be slightly overestimated and will be lower in the 4th quarter, somewhere at the level of premiums of 380-390 dollars per ton.

Market participants' views on the South European premiums were somewhat mixed, with a second trader saying that although he was not very active in the Italian market, he believes that demand is still rather uncertain.