NEW YORK Free-market aluminum scrap and secondary alloy
prices recorded gains on this weeks surge in London Metal
Exchange prices, although some players believe prices will
settle down shortly.
Twitch moved up to a range of 82 to 83 cents per pound from 81
to 83 cents, while secondary-grade painted siding moved up to
72 to 74 cents per pound from 71 to 73 cents.
Meanwhile, mill-grade aluminum scrap prices rose significantly,
with 5052 segregated clippings moving up to a range of 97 to 99
cents per pound from 94 to 96 cents and mixed low-copper
clippings moving up to 83 to 84 cents per pound from 80 to 82
A380.1 widened to $1.02 to $1.04 per pound from $1.02 to $1.03,
while A413.1 tightened up to a range of $1.09 to $1.10 per
pound from $1.08 to $1.10.
The LMEs North American special aluminum alloy contract
(Nasaac) cash price traded at $1,900 per tonne (86.2 cents
per pound), in Friday's official session, up 1.3 percent from
$1,875 per tonne (85 cents per pound) on Monday.
Scrap market participants reported brisk trading following the
New Years break, with many citing the fiscal cliff deal
as a contributing factor.
With the fiscal cliff stuff, there was a lot more
transacting than I had expected, one broker said. I
think it was psychological. Some people probably saw the price
of copper jump, got scared and wanted to do a little bit of
One buyer postulated that strong buying levels from certain
consumers were also forcing prices up.
We ran into the end of the year with less scrap than
normal, but we definitely had more than some of the publicly
listed companies, he said. Theyll be putting
more pressure on the market because they would have gone down
to low inventory levels for their end-of-year financials.
However, both buyers and sellers said that they expect prices
to settle as the optimism associated with the fiscal cliff
Sentiment can change in an hour, a second buyer
said. You look at the knee-jerk on the LME on Wednesday;
aluminum went up four cents. Patience is a virtue in this kind
There are plenty of ready buyers right now, but it may
just be a short-term bump, one seller said. We did
a lot of marketing this week, because were not sure if
those prices are going to stay.
Meanwhile, one alloy producer reported a sale of four
truckloads of A380.1 at $1.05 per pound, while one die caster
said that he purchased A380.1 at $1.01 per pound, having also
been quoted Nasaac material at 98 cents.
Were getting a little more activity. Maybe
its the confidence with the fiscal cliff agreement,
a second producer said. That was a waiting point for a
lot of people, and now theyre ready to pull the