Aluminum Premiums Outlook Update (November 18, 2019)

Executive Summary

USA

1. (From November 12). MW spot premium between suppliers plummets to a 20-month low amid sharp backwardation and Section 232 exemptions.

2. (From November 11). US spot premiums for 6063 billet drop to multi-year lows of 5.5–9.0 cent/lb; Chinese billet has been imported into the US since late October.

3. (From November 12). US PFA spot premiums fall to decade lows despite Section 232 Tariff.

More details in full report.

EUROPE

4. (From November 13). European P1020 premiums fall to ten-month lows amid sharp backwardation, growing oversupply of units, contracting demand, and plummeting MW premiums.

5. (From November 13). European Q1 billet contractual premiums fall to a fresh low; P1020 billet offered by European producers; scrap dealers in Italy offering orphan billet units.

More details in full report.