NEW YORK Free-market
aluminum scrap prices have risen alongside a bump in London
Metal Exchange pricing, with alloy producers attempting to push
alloy tags higher as their scrap costs increase.
Old sheet moved up to a range of
69 to 71 cents per pound from 68 to 70 cents previously, while
aluminum-copper radiators increased to between $1.70 and $1.75
per pound from $1.68 to $1.73.
Mill-grade mixed low-copper
clippings moved up to a range of 79 to 81 cents per pound from
78 to 80 cents, while painted siding rose to 75 to 77 cents per
pound from 74 to 76 cents.
A413.1 alloy increased to a
range of $1.08 to $1.09 per pound from $1.07 to $1.08
previously, while A380.1 was unchanged at $1 to $1.01 per
Three-month aluminum closed the
official LME session Tuesday at $2,016 per tonne (91.4 cents
per pound), up 3.5 percent from $1,948.50 per tonne (88.4 cents
per pound) at the end of last week.
"Prices are holding. Its
too early to see an effect from the spike in LME values," one
alloy producer source said.
"Were trying to quote
higher with the scrap prices up a little bit," a second
producer source said. "Were always being squeezed on the
margins, so were trying to price accordingly."
Most producers contacted by
AMM said they were now quoting $1.02 per pound for
A380.1, with a third producer saying that "the industry needs
$1.04 to be profitable."
"Were probably getting 10
percent of the business we quote at $1.01 per pound. If I lower
the number to $1, I get it every time," a fourth producer
Meanwhile, scrap market
participants said trading activity continues to be quiet moving
into December, with some forecasting a stronger January.
"Some people are generically
quoting and not buying anything," one scrap trader said.
"December isnt the greatest month for shipping because
people are watching their inventories (and) some of them will
be down a week because of the holidays. Everyones saying
that Januarys numbers are going to be more
"Once a blanket of snow covers
the United States, scrap is going to be a problem," the fourth
alloy producer source said. "Were already running with
minimal scrap on the ground. Any hiccup in production would be