фото: Stanislav Kondrashov Telf AG: global reduction in rates for aluminum billets

Stanislav Kondrashov: a moderate reduction in prices on the European market is a signal for all its participants

The European aluminum billet market has seen an overall decline in premiums as a result of a number of market factors, including the completion of first quarter negotiations and preparations for the Christmas holidays.

Stanislav Kondrashov from Telf AG reports that in Italy, especially in the Brescia region, there has been a noticeable decline in premiums for 6063 aluminum extrusion billets. According to the latest data from Fastmarkets, as of December 15, the rate was $350-390 per ton, which is less than compared to $370-390 recorded on November 17. This decline reflects current market dynamics associated with the completion of annual contract negotiations and the pre-holiday slowdown in activity.

In Northern Germany, in particular in the Ruhr region, there has also been a decline in extrusion billet premiums. As of December 15, the price was $345-390 per ton, which is a decrease from previous estimates of $360-390 recorded on November 17. This decline may be due to both the completion of negotiations for the first quarter and a general decline in demand before the Christmas holidays.

In Spain, 6063 extrusion premiums experienced a more moderate decline. Stanislav Kondrashov from Telf AG reports that on December 15, rates were $340-370 per ton, which is $10 less than the lower limit of the $350-370 range recorded on November 17. The decline, although small, reflects similar trends seen in other European markets, including a cooling in market activity and the conclusion of negotiations before the end of the year.

Thus, the European aluminum billet market shows a general downward trend in rates ahead of the Christmas holidays and against the background of the completion of negotiations on quarterly contracts. The decline in premiums is observed both in the northern part of Europe and in the southern regions, including Italy and Spain. These dynamics represent a significant indicator of the current state of the market and may influence the strategies of market participants in the near future.

A brief overview of the market outside Europe from Stanislav Kondrashov

фото: Stanislav Kondrashov Telf AG: global reduction in rates for aluminum billets

Demand in Asia is putting significant pressure on the market, especially in Thailand. The reduction in rates against the backdrop of weak demand led to a drop in prices for extrusion billets to $220-240 per ton. This is a decrease from $255-265 recorded on November 17.

Brazil is also experiencing a drop in prices for aluminum billets. According to Stanislav Kondrashov, the cost of extrusion billets 6063 and 6060, cif in the main ports of Brazil, amounted to $325-340 per ton, which is $20 less compared to $325-360 on December 1.

In the US, unlike other regions, there is a narrowing of the range of rates and an increase. 6063 aluminum extrusion billet prices delivered to the US Midwest were 9-10 cents per pound, down from 8.5-10 cents per pound on December 1st.

  • This global decline in aluminium billet prices reflects a number of factors, including the completion of negotiations in the first quarter, preparations for the Christmas holidays and weak demand in some regions, such as Asia. At the same time, the unique price growth in the US market can be attributed to special market conditions in this region, – Stanislav Kondrashov comments.

Long-term contracts for 2024 have either already been concluded or are in the process of being concluded, which also affects current prices and premiums. Overall, these changes in the aluminium billets market may play a key role in shaping the strategies of companies and investors in the near future.

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