Billet premiums fall in the US and Europe; APEX Act gains further traction
1. LME prices stuck around $1,740 per mton threshold as supportive manufacturing data is offset by inventory buildups.
2. NORTH AMERICA BILLET ALERT. Billet demand falls in October by the most in a decade; unprecedented billet oversupply pushes down spot and 2020 contract billet upcharges to as low as... cent/lb.
3. EUROPE PFA ALERT. PFA spot premiums plummet to fresh lows as demand continues to contract; Annual 2020 premiums expected to decline farther.
4. US MW APEX ACT UPDATE. APEX Act continues to progressively gain support on Capitol Hill.
5. LME Cash–3M backwardation expected to persist amid the emergence of a dominant warrant holder (bearish spot premiums).
6. LME aluminum inventory buildups continue in Malaysia amid nearby backwardation.
7. China’s aluminum prices hold near expected resistance amid thin trading.
More details in full report.