NEW YORK Prices for deoxidized aluminum weakened slightly in April as intense price competition brought the overall market down, producers said.
Most producers logged sales in a range of 99 cents to $1.01 per pound in April, down a penny on the low end from $1 to $1.01 in March. Some sources told AMM that they were still waiting for prices to increase before making any meaningful entry into the market.
"We had to mostly stay out of (the) spot market because the price of old sheet was so high," one producer said. "We were able to sell limited amounts at $1.02, which covers our cost of production. We received lower quotes and couldnt close the deals. At 99 cents, we would be losing money."
Others said that April sales were disappointing due to a lack of demand and downward price pressure.
"Uncertainty played a major role in the deox market this month," a second producer said. "There were a lot of nervous participants, including ourselves, who had to bring prices down to the 99-cent to $1 range."
A third producer said that he had passed on April sales, instead opting for products that could be sold at a profit. "When we dont sell deox, its OK," he said. "Were not going to play in a losing market. We will shift production schedules and wait for prices to increase."