LONDON Prices for A356.2
and C355.2 aluminum alloys bumped up this week, which
participants attribute to the recent rise in the London Metal
Exchange aluminum price.
Prices for A356.2 alloy rose to
$1.28 per pound from $1.26 per pound previously and C355.2
alloy increased to $1.33 per pound from $1.31 per pound.
Three-month aluminum closed the
LMEs official session at $2,123 per tonne Thursday, up
8.6 percent from $1,954 a month earlier.
Demand is robust with good
volumes being ordered, although consumers are avoiding stocking
up on inventory and only buying what they need, producers
"(December) is off a little bit
from October and November (in terms of volumes) but Ill
tell you, Im surprised with the volumes. ... Were
finding out that a lot of people are sitting on no inventory.
And when they call, they want something immediately. No one is
ordering for the future. Its the uncertainty, and
Im sure their customers are ordering at the last minute,"
one producer told AMM.
"A356.2 is busy (but) it was
busier when the LME was lower," a second producer said.
While consumers are keeping
inventory as lean as possible, the first producer expects
demand for these alloys, used in engines, automotive and
building and construction applications, to be fairly robust
going into next year.
"Theyre mostly tied to
automotive, but theres some other outside influences like
construction. And with construction picking up, maybe we can
start selling to the appliance industry, which usually goes
along with home building," the first producer said.