NEW YORK Free-market
aluminum alloy prices rose Feb. 14, with some producers
indicating that a supply crimp was looming if margins
"We are no longer going to
produce alloy that doesnt make money for us," one
producer of A380.1 said. "There is no reason to produce for the
auto industry if there is no margin. Ultimately, you will see
the big boys shut furnaces down. People are not going to
produce and lose money."
A380.1, which is used primarily
in automotive production, rose to a price range of $1.04 to
$1.06 per pound Feb. 14, up a penny from $1.04 to $1.05 Feb.
"We have suffered through five
months of losses knowing things will turn around," an A380.1
seller said. "Now is the time to finally put our foot down.
Smelters need to have some resolve. The big automakers will
figure out how to make it work."
Prices for 356.1 also rose to a
range of $1.11 to $1.12 per pound from $1.10 to $1.11 Feb 11.
A360.1 increased to $1.09 to $1.11 per pound from $1.08 to
$1.10, while A413.1 rose to $1.10 to $1.12 per pound from $1.09
Meanwhile, mill-grade aluminum
scrap prices continued to climb, sources told AMM.
Prices for 5052 segregated low
copper alloy clips rose to a range of 98 cents to $1 per pound
from 97 to 99 cents Feb. 11, while 3105 clips rose to 88 to 90
cents per pound from 86 to 88 cents in the same comparison.
Mill-grade mixed low copper
alloy clips also strengthened to 85 to 87 cents per pound from
84 to 86 cents Feb. 11, while painted siding rose by 1 cent to
80 to 82 cents per pound from 79 to 81 cents.
The cash primary aluminum
contract on the London Metal Exchange ended the official
session at $2,123 per tonne (96.3 cents pound) Feb. 15, up 2.3
percent from $2,076 per tonne (94.2 cents per pound) Feb.
In step with terminal markets
and some tightness in supply, prices for some secondary
aluminum grades increased Feb. 14, according to market
Mixed high zinc clips rose to 70
to 72 cents per pound from 69 to 71 cents, while the range on
secondary smelters mixed clips grew by a penny to 75 to
77 cents from 74 to 76 cents Feb. 11.
Aluminum copper radiators
strengthened by 1 cent to $1.80 to $1.85 per pound from $1.79
to $1.84 previously.
The range on used beverage cans
(UBCs) widened to 80 to 82 cents per pound from 79 to 80
"Everyone seems to be chasing
scrap right now," an aluminum scrap buyer said. "Supply is
still very tight. If it continues, prices are only going to go
All other scrap grades were
The cash North American special
aluminum alloy contract was at $1,960 per tonne (88.9 cents per
pound) in the LMEs official session Feb. 15, up from
$1,905.50 per tonne (86.4 cents per pound) Feb. 11.