NEW YORK Producers of
deoxidized aluminum have expressed frustration at a decoupling
in spot sales prices from scrap purchasing costs, with December
business reported to have dropped as low as 94 cents per
Several producers told
AMM that they had missed the majority of spot business
for December by holding the line on quotes above 95 cents.
"The last of the sales were less
than 95 cents. We did not participate in anything less than 99
cents. We took ourselves out of the market," one producer
"We finished up in the 96- to
98-cent range, but we did not do a lot of business. ... I felt,
as others did, that the market should be up around 98 cents to
$1, and I heard that some people sold below 94 cents," a second
"I think they mostly went for 94
to 95 cents. I missed business, because I was quoting 96 to 97
(cents)," a third producer added. "I think there were a few big
guys with access to inventory wanting to make sure they got rid
The second producer said he was
frustrated by deox spot prices for December ending slightly
lower than November levels (
amm.com, Nov. 7), with the price of scrap
increasing with recent gains in London Metal Exchange pricing
after holding steady for much of November.
"I dont think the LME has
any kind of pressure on the deox sales price whatsoever. We see
the run-up in the LME push the price of scrap up, and deox
doesnt go with it. Theres no rhyme or reason
anymore," he said.
Old sheet is currently trading
in a range of 71 to 73 cents per pound, well above the 30-cent
spread traditionally sought by deox producers.