NEW YORK Secondary
mill-grade aluminum scrap prices weakened Feb. 7, with market
participants noting worsening margins on slightly higher
Prices for 5052 segregated
low-copper alloy clips fell to a range of 96 to 98 cents per
pound from 97 to 99 cents on Feb. 4, while 3105 clips decreased
to 85 to 87 cents per pound from 86 to 88 cents.
"I think the terminal market is
range-bound," one mill-grade buyer said. "At this point, we
would have to see a narrowing of spreads for scrap prices to
Mill-grade mixed low copper
alloy clips also trended with terminal markets, falling 1 cent
to 83 to 85 cents per pound from 84 to 86 cents, while painted
siding weakened to 78 to 80 cents per pound from 79 to 81 cents
"Were still pretty busy,"
one mill-grade seller noted. "Our volumes are good, but margins
definitely need to improve."
The cash primary aluminum
contract on the London Metal Exchange ended the official
session at $2,066.50 per tonne (93.7 cents per pound) Feb. 8 up
50 cents from a day earlier but down from $2,079 per tonne
(94.3 cents per pound) Feb. 4.
Meanwhile, some secondary
smelters aluminum scrap grades increased Feb. 7, sources
Prices for secondary
smelters mixed high copper clips rose 2 cents to 77 to 79
cents per pound from 75 to 77 cents, while painted siding
increased to 74 to 76 cents per pound from 73 to 75 cents Feb.
"Scrap is still tight," one
secondary buyer said. "People are looking at heavy order books
and are having trouble getting enough material. Scrap is out
there, you just have to know where to find it."
The cash North American special
aluminum alloy contract (Nasaac) closed the LMEs official
session at $1,885.50 per tonne (85.5 cents per pound) Feb. 8,
unchanged from a day earlier and down 1.8 percent from a
three-week high of $1,920 per tonne (87.1 cents per pound) Feb.
Prices for 356.1 trended with
Nasaac Feb. 7, moving down to a range of $1.09 to $1.11 per
pound from $1.10 to $1.12 previously.
Prices for A380.1 were unchanged
at $1.03 to $1.04 per pound, with some sellers indicating that
lower supplies of scrap might cause A380 prices to rise in the
"Were hearing incredible
tightening on scrap right now," an A380 seller said. "Spot
sales will have to be sky high for me to even think about
selling. If I sell something today I have to make it, which
means I have to rely on spot prices in a tightening scrap
market. Its risky."
All other secondary grades were