Subscription inquiry

LME inventory buildups continue; US PFA spot premiums down to decade-lows, European billet market seen in bottoming-out process

Executive Summary

1. LME prices continue to trade mostly sideways, supported by improving demand sentiment but pressured down by inventory buildups and trade uncertainty.

2. LME aluminum inventories climb to a nineteen-month high as buildups accelerate in Asia.

3. LME Cash–3M contango widens to a seven-week high as nearby tightness continues to moderate (premium supportive).

4. CME MW duty-paid financials for H2 2020 drop to a twenty-month low of 15.10 cent/lb.

5. HARBOR FIRST-USMCA ALERT. Signed USMCA agreement "improves the region's competitiveness" and "shields the region from any potential monopolistic abuse," Mexican Aluminum Association says to HARBOR in a statement.

6. US PFA ALERT. High end of US PFA spot ingot premiums declines further due to reigning oversupply. Price differential between PFA tee and ingot continues to dissipate.

7. EUROPEAN BILLET UPDATE. Spot premiums fall farther in Spain and the UK; premiums expected to bottom-out soon; some secondary billet producers almost at a standstill.

8. China’s aluminum prices gather upward momentum, attempting to consolidate above important resistance zone.

More details in full report.