LME prices hold within support zone; European Q3 billet offers fall; Brazil P1020 import quota period extended
1. LME prices fall slightly but remain within our expected $1,550–$1,580 per mton support zone.
2. LME inventory buildups continue to take place in Asia; more deliveries expected.
3. LME Cash–July backwardation persists but multiyear-high LME inventories continue to support contangos after July.
4. EUROPEAN BILLET UPDATE. Competition for market share pushes Q3 offers in Southern Europe to as low as $240 per mton, while Q4 contracts are seen as high as $285 per mton. To see our full European Billet Market Intel and Premiums assessment please subscribe to our specialized European Billet Intelligence Report.
5. BRAZIL P1020 UPDATE. Tariff-free import quota period extended amid plummeted demand; Brazilian premiums unchanged.
6. IRAN ALUMINUM UPDATE. US adds Iranian primary aluminum producer Salco to official list of sanctioned entities.
7. The Shanghai Futures Exchange (SHFE) was closed today due to the Dragon Boat Festival. Trading will resume on Monday, June 29.
More details in full report.