NEW YORK Some grades of
secondary and mill-grade aluminum scrap declined Feb. 25 as
buyers and sellers alike complained of reactionary conditions
amid weakening terminal markets.
Prices for 5052 segregated low
copper alloy clips fell to 94 to 96 cents per pound from 96 to
98 cents Feb. 21, while 3105 clips declined to 85 to 86 cents
per pound from 87 to 88 cents. Mill-grade mixed low copper
alloy clips weakened to 82 to 84 cents per pound from 84 to 85
cents, while painted siding fell to 77 to 79 cents per pound
from 78 to 80 cents.
The cash primary aluminum
contract on the London Metal Exchange ended the Feb. 25
official session at $2,004 per tonne (90.9 cents per pound),
down 1 percent from $2,024.50 per tonne (91.8 cents pound) the
previous day and down 2.1 percent from $2,047 per tonne (92.9
cents per pound) Feb. 21.
"People are trying to buy lower
and lower right now and see how far it goes," one mill-grade
scrap buyer said. "Everyone is just trying to live to fight
Meanwhile, prices for some
secondary smelters grades also followed terminal markets
down, sources said.
Prices for 1-1-3 sows fell to a
range of 79 to 81 cents per pound Feb. 25 from 80 to 82 cents
previously, while mixed clips weakened to 74 to 76 cents per
pound from 75 to 77 cents. Used beverage cans (UBCs) fell to 76
to 78 cents per pound from 79 to 81 cents.
"Nobody seems to know why the
primary market is falling," one scrap trader said. "Things seem
okay in terms of volume and supply, and you would think the
market would go up. We are confused."
Others felt that recent economic
turmoil overseas had caused downward trends to emerge in
domestic markets. "I just dont like what I am reading in
the world," a secondary aluminum buyer said. "There are too
many contradictions in the numbers coming out of China and
The LMEs cash North
American special aluminum alloy contract (Nasaac) ended the
Feb. 25 official session at $1,890.50 per tonne (85.8 cents per
pound), down 1.5 percent from $1,920 per tonne (87.1 cents per
pound) Feb. 21.
Despite the overall weakness, a
mixed scrap market offered alloy makers sufficient support to
hold on to a $1.04- to $1.06-per-pound range for sales of
A380.1, sources told AMM.
All other major alloy prices
remained unchanged Feb. 25 from prior levels, with 319.1
trading between $1.10 and $1.11 per pound, 356.1 was in a range
of $1.12 to $1.13 per pound and the low copper A360.1 and
A413.1 alloys were $1.10 to $1.11 per pound and $1.11 to $1.12
per pound, respectively.
"I am hoping my competition
follows the trend upward," an alloy seller said. "Even though
prices are holding, nobody is admitting to making money.
Thats probably because scrap is still tight and margins
All other secondary scrap grades