European aluminium billet premiums nudged higher over the past week after delays to some deliveries from the Middle East led to rising spot interest, although end-user demand remained weak. Ingot premiums remained flat today as forward spreads on the London Metal Exchange (LME) aluminium contract fell into a slight backwardation, discouraging new purchases.

The Argus 6063 extrusion billet premium assessments delivered to Germany and Italy climbed to $500-530/t today, from $480-520/t previously, while the in-warehouse Rotterdam 6063 billet premium rose to $450-480/t from $430-470/t.

"Things have been a bit more active over the past couple of weeks. We've noticed some regular delays to shipments from the Middle East over the past month," one trader said. "Premiums have found some support."

Ingot premiums were flat this week. The Argus weekly assessment of the in-warehouse Rotterdam duty-paid P1020 ingot premium stayed at $200-220/t today, while the duty-unpaid premium assessment remained at $160-190/t.

The LME cash to three months aluminium spread slipped into backwardation this week, reaching a backwardation of $1/t today from a contango of around $4/t last week.

LME aluminium prices were little moved over the past week. The three-month LME aluminium contract settled at $2,480/t in today's official session, up by just 0.81pc on the week.

The German aluminium industry posted a slight increase in production in the first quarter after output fell through 2024, but remains under pressure and in need of energy price relief as well as a "reliable framework" for growth, industry association Aluminium Deutschland said this week. Germany produced 703,000t of recycled aluminium in the first three months of this year, up by just 3pc from the corresponding period last year, while output of semi-finished aluminium products edged up by 1pc to 576,000t.