LME prices above $… per mton seen as unsustainable for now; US extrusion demand contraction pressuring supply chain

April 19, 2023

 

1. LME prices upheld yesterday’s gains, remaining at six-week highs. However, levels above $… per mton are seen as possible but not sustainable.

2. China’s aluminum price tests the upper end of the eight-month-old trading range.

3. RERUN: ALERT! – US BILLET. CHALLENGING DEMAND CONDITIONS: Extrusion demand contraction pressuring the entire supply chain.

4. ALERT! – EUROPE PFA. MIXED SENTIMENT: European PFA spot premiums unchanged on mixed demand sentiment.

5. UPDATE! – WORLD SMELTING PRODUCTION COST. TWO-YEAR LOWS: World smelting costs fall toward $… per mton.

For details on world aluminum smelting cost trends and figures, subscribe to HARBOR’s “Aluminum Smelting Cost” report.

6. LME Cash–3M contango widens further from recent five-month lows, still tight for short-term cash-and-carry deals.

 

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