NEW YORK Deoxidized
aluminum prices have inched higher over the past month,
producers of the product said, but some sellers noted increased
headwinds from smaller producers who are continuously
undercutting the market.
Several sellers of deox told
AMM that they had missed the bulk of January business
by holding the line on quotes above $1 per pound.
"We only filled a few orders in
the 97- to 98-cent range," one seller said. "Our cost is $1
flat. We were getting steel mills offering ridiculously low
prices, and we just cant do it. They go around asking
everybody for lower and lower prices until they find the
Other sellers had similar
"There are a lot of deox
producers who dont have the flexibility to produce
alloys. ... Those guys tend to bring the entire market down,
because thats all they sell," a second seller noted.
"We didnt get much spot
business quoted," a third seller said. "Deox on the whole has
been kind of an undervalued market as of late. If the price is
too low, we just wont sell. We were hearing 97.5 to 99
cents per pound. We simply cant convert scrap at those
Despite a noticeable increase
from December, January prices were still too low to maintain
profitability, the second seller said. "January spot prices
have certainly come up from December," he said. "We were
hearing horror stories of people quoting 2 to 3 cents lower in
December. We cant sell at those levels."