Weather sends aluminum scrap prices higher

Dec 15, 2010 | 10:01 AM | Sean Davidson

Aluminum scrap prices rose this week as flows were reduced drastically and markets went quiet. Heavy snowfall in some Midwest regions like northern Indiana also caused minor delivery delays.

Secondary smelter scrap prices were up a penny from last week and mill grade scrap prices moved up 2 cents per pound. The move followed a similar price increase by ingot makers last week.

The price hikes came as no surprise to market participants, who said the changes were seasonal. Secondary scrap traders were quick to point out that prices weren't following the rise of primary aluminum on the London Metal Exchange, but rather reflected real market dynamics.

Smelter grade painted siding moved to between 72 and 74 cents per pound this week, up from 71 to 72 cents last week.

In mill grade scrap, segregated low copper alloy clips (5052) have risen to between 95 cents and $1.02 per pound based on volume. Last week, with the price of A380.1 at $1.10 per pound, 5052 material was selling in a range of 92 cents to $1 per pound. On Dec. 8, ingot makers drove the price up to $1.12 per pound in anticipation of a 2-cent increase in scrap prices driven by weather changes.....