The so-called mating season, when buyers and sellers negotiate terms and conditions for next year’s needs, is extending into the fall later than last year as uncertainty related to inflation, supply chains and economic growth leave buyers hesitant to book more metal than might get consumed, according to conference participants.
Buyers familiar with negotiations raised red flags in June, saying they expected the mating season to begin later. With that concern now confirmed, executives admit demand is weak as customers are opting to work through an overhang of stockpiles instead of booking new deals.
“While we do expect some potential clouds with the possibility of a broader economic slowdown, aluminum remains well-positioned to weather any storm,” said Buddy Stemple, the chief executive of Constellium Rolled Products.
To be sure, strength in packaging and the beverage can industry as well as strengthening aerospace demand…
