{"id":1117,"date":"2021-11-08T15:34:31","date_gmt":"2021-11-08T13:34:31","guid":{"rendered":"https:\/\/scrapad.com\/?p=1117"},"modified":"2024-05-07T17:34:42","modified_gmt":"2024-05-07T15:34:42","slug":"bearish-signals-in-the-european-aluminium-billet-market","status":"publish","type":"post","link":"https:\/\/scrapad.com\/en\/blog\/bearish-signals-in-the-european-aluminium-billet-market","title":{"rendered":"Bearish signals in the european aluminium billet market"},"content":{"rendered":" \n    <div class=\"c-post--header\" style=\"background-image: url(https:\/\/scrapad.com\/wp-content\/uploads\/2023\/09\/tocho-aluminio.jpg);\">\n        <a href=\"\" class=\"c-back-action\">\n            Go back        <\/a>\n        <h1>Bearish signals in the european aluminium billet market<\/h1>\n\t\t<p class=\"c-post--author\">\n\t\t\tAuthor:\t\t\t<a href=\"https:\/\/scrapad.com\/en\/author\/scrapad-admin\/\">ScrapAd<\/a>\n\t\t<\/p>\n        <div class=\"c-post--meta\">\n            <p>08\/11\/2021<\/p>\n            <div class=\"c-post--actions\">\n                <a onclick=\"window.print()\" class=\"c-article__action\">\n                    <i class=\"large material-icons icon\">print<\/i>\n                <\/a>\n                <a data-clipboard-text=\"\" class=\"c-article__action\">\n                    <i class=\"large material-icons icon\">content_copy<\/i>\n                <\/a>\n                <span class=\"c-article__action share__trigger\">\n\t\t\t\t\t<i class=\"large material-icons icon\">share<\/i>\n\t\t\t\t\t<ul class=\"share__displays\">\n\t\t\t\t\t\t<li>\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=\" target=\"_blank\" rel=\"noopener\">\n\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/scrapad.com\/wp-content\/plugins\/scrapad-blocks\/assets\/icons\/share\/facebook.svg\" alt=\"\">\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<li>\n\t\t\t\t\t\t\t<a href=\"https:\/\/twitter.com\/share?text=&amp;url=\" target=\"_blank\" rel=\"noopener\">\n                                <img decoding=\"async\" src=\"https:\/\/scrapad.com\/wp-content\/plugins\/scrapad-blocks\/assets\/icons\/share\/twitter.svg\" alt=\"\">\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<li>\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.linkedin.com\/shareArticle?mini=true&amp;url=&amp;title=&amp;summary=&amp;source=\" target=\"_blank\" rel=\"noopener\">\n                                <img decoding=\"async\" src=\"https:\/\/scrapad.com\/wp-content\/plugins\/scrapad-blocks\/assets\/icons\/share\/linkedin.svg\" alt=\"\">\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<li>\n\t\t\t\t\t\t\t<a\n\t\t\t\t\t\t\t\thref=\"mailto:info@scrapad.com?&amp;cc=&amp;bcc=&amp;subject=&amp;body=\"\n\t\t\t\t\t\t\t\ttarget=\"_blank\"\n\t\t\t\t\t\t\t>\n                                <img decoding=\"async\" src=\"https:\/\/scrapad.com\/wp-content\/plugins\/scrapad-blocks\/assets\/icons\/share\/email.svg\" alt=\"\">\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t<\/ul>\n\t\t\t    <\/span>\n            <\/div>\n        <\/div>\n    <\/div>\n     \n    <section class=\"c-container \" style=\" background-color: #FBFBFB; background-size: cover; --xsPadding: 40px 25px 40px 25px; --smPadding: 40px 25px 40px 25px; --mdPadding: 80px 100px 80px 100px; --lgPadding: 80px 100px 80px 100px; --xlPadding: 80px 100px 80px 100px; --xxlPadding: 80px 200px 80px 200px;  \">\n        <div class=\"wp-block-scrapad-blocks-container c-post\">\n<div class=\"c-article__desc wp-block-scrapad-blocks-article-desc\">\n<p>The final stretch of the year presents us with a decrease in the demand for billet in the European spot market. However, there are a series of variables that are slowing down the fall and maintaining some stability in the market. This is due to multiple factors that we will analyse below.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reasons for the decline in aluminium demand<\/h2>\n\n\n\n<p>On the one hand, we will look at the reasons for the drop in demand.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Extrusion plants have<strong>&nbsp;accumulated stock<\/strong>&nbsp;during the year, so they maintain high levels of billet inventory.<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/scrapad.com\/en\/blog\/what-is-lme-london-metal-exchange\/\" target=\"_blank\" rel=\"noreferrer noopener\">LME<\/a>&nbsp;prices<\/strong>&nbsp;are showing an accelerated decline which has a direct influence on the cost of billet production.<\/li>\n\n\n\n<li><strong>Manufacturing activity<\/strong>&nbsp;is declining sharply due to lack of some supplies, logistical costs and energy costs, leading to a decrease in demand for raw materials.<\/li>\n\n\n\n<li><strong>Russia has eliminated export taxes,<\/strong>&nbsp;which marks an attractive horizon for negotiation.<\/li>\n<\/ul>\n\n\n\n<p>On the other hand, the factors that are sustaining the market are the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Logistical problems<\/strong>: The container and freight crisis is delaying shipments of this product that have already been agreed and are also beginning to suffer the consequences in land transport.<\/li>\n\n\n\n<li>Suppliers are&nbsp;<strong>reducing supply as the energy crisis<\/strong>&nbsp;has caused production costs to soar, which has even led to production cuts in some European plants, especially in those countries with high energy bills.<\/li>\n\n\n\n<li>Supplies of other metals that are necessary for the production of certain&nbsp;<strong>aluminium alloys are also experiencing supply problems, such as magnesium and silicon<\/strong>. To cope with these&nbsp;<a href=\"https:\/\/www.scrapad.com\/en\/materials\/magnesium\/\">magnesium<\/a>&nbsp;and silicon supply problems, smelters will be forced to increase consumption of materials with high magnesium and silicon content: wheels (aluminium with 13% silicon), aluminium 5000 series alloys for magnesium and car steering wheels made with magnesium to aluminium. Magnesium-rich wheels are also available.<\/li>\n\n\n\n<li><strong>End of the EU-US tariff war&nbsp;<\/strong>on&nbsp;<a href=\"https:\/\/www.scrapad.com\/en\/materials\/iron-steel\/\">steel<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/www.scrapad.com\/en\/materials\/aluminium\/\">aluminum<\/a>.&nbsp;<\/li>\n<\/ul>\n<\/div>\n<\/div>\t<\/section>\n        <div class=\"c-container c-post--related\" style=\"background-color: #F7F5F2; --xsPadding: 40px 25px 40px 25px; --smPadding: 40px 25px 40px 25px; --mdPadding: 40px 25px 40px 25px; --lgPadding: 72px 100px 72px 100px; --xlPadding: 72px 100px 72px 100px; --xxlPadding: 72px 100px 72px 100px;\">\n        <div class=\"container\">\n            <h3 class=\"c-article__side__heading\">Other posts that may interest you\u2026<\/h3>\n        <\/div>\n        <div class=\"scrapad-blocks-related glide\" data-autoplay=\"4000\" data-views-desktop=\"3\" data-views-tablet=\"2\" data-views-mobile=\"1\" data-mode=\"slider\">  \n            <div class=\"container glide__track\" data-glide-el=\"track\">\n                <div class=\"row slider-mobile glide__slides\">\n                                                                         \n                            <div class=\"col-12 col-lg-6 glide__slide\">\n                                    <div class=\"c-blog__item\">\n        <a href=\"https:\/\/scrapad.com\/en\/blog\/are-magnesium-reserves-about-to-run-out-in-europe\/\" class=\"c-blog__item--inner\">\n            <div class=\"c-blog__item__header\">\n                <div\n                    class=\"c-blog__item__image\"\n                    style=\"background-image: url(https:\/\/scrapad.com\/wp-content\/uploads\/2023\/09\/magnesio.jpg;\"\n                ><\/div>\n                <\/div>\n                <div class=\"c-blog__item_body\">\n                    <h4 class=\"c-blog__item__title\">Are magnesium reserves about to run out in Europe?<\/h4>\n                    <div class=\"c-blog__item__meta\">\n                        <span class=\"c-blog__item__date\">20\/10\/2021<\/span>\n                    <\/div>\n                <div class=\"c-blog__item__desc\">\n                    <p>The German metals industry, through the WV Metalle association, has sounded the alarm about a supply crisis similar to the one that has occurred with chips.<\/p>\n                <\/div>\n                <div class=\"c-blog__item__footer\">\n                    <span class=\"c-blog__item__link\">Show details<\/span>\n                <\/div>\n            <\/div>\n        <\/a>\n    <\/div>\n                                <\/div>\n                                                     \n                            <div class=\"col-12 col-lg-6 glide__slide\">\n                                    <div class=\"c-blog__item\">\n        <a href=\"https:\/\/scrapad.com\/en\/blog\/rising-shipping-costs-will-impact-on-business-and-consumers\/\" class=\"c-blog__item--inner\">\n            <div class=\"c-blog__item__header\">\n                <div\n                    class=\"c-blog__item__image\"\n                    style=\"background-image: url(https:\/\/scrapad.com\/wp-content\/uploads\/2023\/09\/encarecimiento-transporte-maritimo-scaled.jpg;\"\n                ><\/div>\n                <\/div>\n                <div class=\"c-blog__item_body\">\n                    <h4 class=\"c-blog__item__title\">Rising shipping costs will impact on business and consumers<\/h4>\n                    <div class=\"c-blog__item__meta\">\n                        <span class=\"c-blog__item__date\">07\/07\/2021<\/span>\n                    <\/div>\n                <div class=\"c-blog__item__desc\">\n                    <p>Global trade, both import and export, is being threatened\u00a0by\u00a0rising shipping prices. These prices have tripled in recent months.<\/p>\n                <\/div>\n                <div class=\"c-blog__item__footer\">\n                    <span class=\"c-blog__item__link\">Show details<\/span>\n                <\/div>\n            <\/div>\n        <\/a>\n    <\/div>\n                                <\/div>\n                                                            <\/div>\n            <\/div>\n        <\/div> \n    <\/div>\n    ","protected":false},"excerpt":{"rendered":"<p>The final stretch of the year presents us with a decrease in the demand for billet in the European spot market. However, there are a series of variables that are slowing down the fall and maintaining some stability in the market.<\/p>\n","protected":false},"author":2,"featured_media":1120,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51,52],"tags":[],"class_list":["post-1117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-metales","category-metals"],"acf":{"post_country":{"simple_value_formated":"<ul><li><a class=\"post-link\" href=\"https:\/\/scrapad.com\/en\/blog\/bearish-signals-in-the-european-aluminium-billet-market\" rel=\"bookmark\">Bearish signals in the european aluminium billet market<\/a><\/li><\/ul>","value_formated":"","value":"","field":{"ID":0,"key":"field_64ef02d93e348","label":"Pa\u00eds","name":"post_country","aria-label":"","prefix":"acf","type":"relationship","value":null,"menu_order":0,"instructions":"","required":0,"id":"","class":"","conditional_logic":0,"parent":"group_64ef02d9ad6ee","wrapper":{"width":"","class":"","id":""},"post_type":["paises"],"post_status":["publish"],"taxonomy":"","filters":["search","post_type","taxonomy"],"return_format":"id","min":"","max":"","elements":"","_name":"post_country","_valid":1}}},"_links":{"self":[{"href":"https:\/\/scrapad.com\/en\/wp-json\/wp\/v2\/posts\/1117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scrapad.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scrapad.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scrapad.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/scrapad.com\/en\/wp-json\/wp\/v2\/comments?post=1117"}],"version-history":[{"count":3,"href":"https:\/\/scrapad.com\/en\/wp-json\/wp\/v2\/posts\/1117\/revisions"}],"predecessor-version":[{"id":8974,"href":"https:\/\/scrapad.com\/en\/wp-json\/wp\/v2\/posts\/1117\/revisions\/8974"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scrapad.com\/en\/wp-json\/wp\/v2\/media\/1120"}],"wp:attachment":[{"href":"https:\/\/scrapad.com\/en\/wp-json\/wp\/v2\/media?parent=1117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scrapad.com\/en\/wp-json\/wp\/v2\/categories?post=1117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scrapad.com\/en\/wp-json\/wp\/v2\/tags?post=1117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}