(MB) Base metals prices on the Shanghai Futures Exchange were broadly up during morning trading on Monday, with the complex drawing support from a weaker dollar following US President Donald Trump’s criticism of global monetary policy and the Federal Reserve at the end of last week. The aluminium billet upcharge in the United States held at an all-time high last Friday, with strong demand easing in line with seasonal expectations against a backdrop of restricted domestic supply.
Secondary aluminium alloys prices in the US have continued to march lower as continued deterioration in aluminium scrap prices weighs heavily on the market.
The US Midwest aluminium premium has inched up, with sellers finding less reason to discount off of published premiums while the backwardation on the London Metal Exchange is expected to ease in the coming weeks.
The Brazilian spot aluminium billet premium dropped 16% versus last month, with spot demand all but dried up in the region. Premiums elsewhere were largely unchanged, with the effect of UC Rusal’s exit from the US market already factored into premium levels.
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The cost of graphite electrodes used in steelmaking probably will not decline to the pre-2017 price range for years, according to one of the largest producers.