NEW YORK Mill-grade aluminum scrap prices have logged
some hefty declines while secondary aluminum scrap and alloy
prices remain largely unchanged as strong demand and reports of
tightening scrap flows lend support.
Prices for 1-1-3 sows fell to a range of 78 to 80 cents per
pound from 79 to 81 cents previously, while mixed high-zinc
clips dropped to 67 to 69 cents from 68 to 70 cents per pound.
Used beverage cans (UBCs) moved to 77 to 79 cents per pound
picked up, down sharply from 82 to 84 cents per pound
previously; 3105 segregated clippings to 82 to 84 cents per
pound, down from 85 to 87 cents; and mill-grade painted siding
to 75 to 77 cents per pound, down from 79 to 81 cents.
Mill-grade aluminum and UBC prices fell due a decline in prices
on the London Metal Exchange, according to market participants.
The cash North American special aluminum alloy contract
(Nasaac) traded at $1,840 per tonne (83.5 cents per pound) in
the London Metal Exchanges official session Tuesday, down
3.2 percent from Fridays offical price of $1,900 per
tonne (86.2 cents per pound).
Scrap market participants told AMM that most free-market
secondary scrap prices hadnt followed the LME lower
because demand was still strong, particularly as many companies
returned to full production after the holiday season.
It depends on where youre at. If youre short
and its winter, youre going to pay whatever,
one buyer said.
We would love to drop prices in the face of the falling
LME, but I dont think its a good strategy right
now, a second buyer said.
Tightening scrap flows associated with progressively colder
weather was also a factor, one broker said.
Theyre not short, but they still need metal. Prices
may come down if they fill their bellies a little, but
theyre not able to buy anything right now, he said.
By Wednesday, if the LME stays where its at or
drops, then the free-market prices will drop.
The intransigence of scrap prices was also keeping alloy prices
stable, alloy producers said.
A380.1 continuing to trade in a range of $1.02 to $1.04 per
Were not going to drop prices automatically. When
the LME has been going up people have been hesitant to pay
more, so were going to do the same when it goes
down, one producer said.
I suspect we could sell easily at $1.03, but the scrap
price is not allowing us to sell at that, a second alloy
producer who is quoting at $1.04 per pound for A380.1 added.