Can-stock caps dig into scrap prices, margins

Aug 12, 2005 | 09:39 AM |

A rolling mill executive hinted Thursday that aluminum can scrap prices have been flattened in an up market by the price caps on can stock written into mills' contracts with container makers.

WISE METALS GROUP LLC(in thousands) 200520042nd qtr. ended June 30Net sales$231,154$197,953Net income (loss)5,491(10,493)6 months ended June 30Net sales452,715$395,169Net income (loss)(743)(16,305)Danny Mendelson, executive vice president and chief financial officer at Wise Metals Group LLC, was describing his company's efforts to get such ceilings removed. He said Wise, based in Linthicum, Md., was stuck with about $6 million in metals costs during the second quarter that couldn't be passed along to customers because of price caps.....

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