SALZBURG, Austria Long-term secondary aluminum contracts
are on the wane as prices remain volatile in Europe, according
to Fredrik Petterson, managing director of Swedens Stena
We put our business at risk if we go into longer-term
contracts. From time to time we see that the correlation (with
the London Metal Exchange) is good, but then it goes away
again, he told delegates at the recent AMM sister
publication Metal Bulletins 20th International Recycled
Aluminium Conference in Salzburg.
This creates a very difficult market, he said.
The next question is whether we have a level playing
field. We dont have the same rules in the E.U., and we
dont have the same rules outside the E.U., either.
Most companies in Europe are trying to abide by the rules and
regulations imposed on them, Petterson said, adding that
customers may be inclined to move their business to those
companies that are not restricted by such legalities and
therefore may be able to offer better prices.
As a result, he continued, companies must focus on adding value
for customers, which in Älmhult, Sweden-based Stenas
case, includes selling its waste heat back to them, as well as
providing materials-handling services.
We, as an industry, need to be much stronger. If we
dont have mutual price models, it makes us much
weaker, Petterson added. We have to address these
questions (together). We have to act as a unified
A version of this article was first published by AMM sister
publication Metal Bulletin.