Processors feel pinch as UBC prices tumble
Oct 30, 2008 | 06:10 AM
| Paul Schaffer
Processing yards are beginning to see the effects of a large price drop in aluminum used beverage can (UBC) scrap, which has begun curtailing receipts, but the full impact will be muffled for a month or two by large inventories at recyclers and sheet mills, market participants said.
Can scrap values currently are 56 to 58 cents a pound leaving the scrapyard headed for the mill, down 25 percent from 75 to 77 cents a month ago and off 46 percent from March's peak of $1.05 to $1.07 a pound.
Canstock producers' scrap requirements will be cut somewhat in the fourth quarter by equipment downtime at Alcoa Inc. in Tennessee, a side effect of a major expansion project that began late last year.....
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