Metal Bulletin
Spot inquiries on rise in NA aluminum billet market
Edited by : AL CIRCLE
1 min read
January is off to a strong start in the North American billet market as producers report a pickup in inquiries from customers looking for additional spot metal following an abnormally slow contract season.
The mating season for the 2012 contract year was unusually sluggish this fall as cautious customers were wary about locking in long-term metal in an uncertain market (AMM, Nov. 21). That pullback in contract buying has prompted the increase in spot deal inquiries seen so far this January and could lead to more spot activity in coming months, producers said, noting that any prolonged pickup could help support premiums.
"The billet folks did not contract aggressive supply for this year. They were worried," the second producer said. "I think you’ll start seeing some aggressive spot numbers."
The mating season for the 2012 contract year was unusually sluggish this fall as cautious customers were wary about locking in long-term metal in an uncertain market (AMM, Nov. 21). That pullback in contract buying has prompted the increase in spot deal inquiries seen so far this January and could lead to more spot activity in coming months, producers said, noting that any prolonged pickup could help support premiums.
"The billet folks did not contract aggressive supply for this year. They were worried," the second producer said. "I think you’ll start seeing some aggressive spot numbers."
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