NEW YORK Producers of
deoxidized aluminum are forecasting steady demand and prices
moving into December, although one producer source said his
company wont participate in the market if tags are below
$1 per pound.
The majority of deox business
for December has yet to be finalized, producers told
AMM, adding that they are awaiting responses from many
consumers regarding price quotes.
A second producer source said he
has already heard of some business taking place in a range of
94 to 97 cents per pound. "I think demand hasnt really
moved from last month," he said.
A third producer is targeting
prices in a range of 96 to 98 cents per pound, with the
possibility of 99-cent orders for specialty grade material.
"Prices certainly arent down. I think theyre pretty
much sideways," he said.
The first producer source said
his company is expecting "a lot of activity this week" as it
investigates the deox market. "If we get anything under $1, we
wont be participating in that market," he said. "December
is normally a low shipping and production month, so Im
not chasing anything scrap- or sales-wise."
The same producer source
previously told AMM that a "fair" price for deox is
"the high side of old sheet plus 30 cents," which would
"typically generate about 2 cents (per pound) net profit at an
efficient producer." He put the price of old sheet at 70 cents
per pound on Monday.