NEW YORK Slowing demand and lower scrap prices could bring secondary aluminum alloy prices down in the coming weeks, according to market sources.
"Its been pretty weak in terms of demand going into June and July," one alloy producer source said May 16. "We saw prices come off a little last week, but things have been pretty flat this week."
Prices for A380.1 remained at $1.03 to $1.04 per pound May 16, with one producer source telling AMM that he had made sales in a range of $1.02 to $1.03. Alloy 319.1 was steady at $1.08 to $1.09 per pound and 356.1 remained at $1.10 to $1.11, while A360.1 and A413.1 were unchanged at $1.09 to $1.10 per pound.
The cash primary aluminum contract on the London Metal Exchange ended the May 16 official session at $1,802.50 per tonne (81.8 cents per pound), down 1.4 percent from $1,827.50 per tonne (82.9 cents per pound) May 13. But prices edged higher May 17 to end the week at $1,840.50 per tonne (83.5 cents per pound).
Despite the LME fluctuations, most grades of secondary smelters aluminum held steady May 16. The only grade to register a price change was old cast, which slipped to 71 to 73 cents per pound from 72 to 74 cents May 13.
Prices for mill-grade aluminum scrap were unchanged May 16, with market participants indicating that sellers had done a majority of their transactions the previous week and were now waiting for near-term bumps on the LME.