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.