UK secondary aluminium ingot prices fell on Wednesday April 25,
as export markets remain closed due to unfavourable exchange
rates and a shortage of containers for eastbound shipping.
"Whichever part of the market you are in, with the euro at 1.22
[to the pound sterling] and the dollar at 1.61, the export
markets are not good for ingot or scrap," an ingot producer
LM24 pressure diecasting ingot
£1,440-1,500 ($2,323-2,420) per tonne from
£1,470-1,520 previously, while LM6/LM25 gravity diecasting ingot
to £1,750-1,800 per tonne from £1,760-1,810.
"Ingot has clung on long enough to higher prices and there have
been some adjustments," the producer said. "There is good
demand, but the UK market is oversupplied at the moment."
Demand from UK consumers remains good, but with the export
markets shut there is far more material, both scrap and ingot,
now available in the UK than the market can absorb.
"The export market is not pleasant - it got quite tough and
quite depressing quite fast," a scrap dealer said.
Scrap prices also fell on Wednesday, due to fewer exports and
also the continuing weakness in London Metal Exchange aluminium
Three-month aluminium on the LME settled at $2,054/054.5 per
tonne on Monday April 23, from its peak the previous week of
"It continues to affect the pure grades and also hits sentiment
on the commercial grades," the scrap dealer said.
Commercial pure cuttings
£1,000-1,050 per tonne from £1,010-1,070
previously, while clean HE9 extrusions
£1,120-1,180 per tonne from £1,140-1,190.
In the commercial grades, loose old rolled cuttings
£830-850 per tonne from £850-880; baled old rolled cuttings
£900-950 per tonne from £930-980; cast wheels
dipped to £1,170-1,230
per tonne from £1,190-1,250; and commercial turnings
fell to £690-750
per tonne from £700-760.
"Demand for ingot has fallen because the producers are not able
to export so much. They've been squeezed more, and as scrap
traders we get squeezed as they do," the scrap dealer said.
Traditionally, scrap sellers have been able to resist lower
prices from falling ingot prices for a short time at least, but
with export markets closed scrap dealers have to accept lower
prices from UK buyers more promptly.
"Whether you are a producer, a trader or a consumer [of scrap],
margins are very thin," the producer said. "Everyone realises
the pressure is on and prices may weaken further going