NEW YORK Prices
for deoxidized aluminum weakened in July as slowing demand from
steel mills caused heavy price competition among producers,
Sales in the first
half of the month hovered around 95 to 97 cents per pound, most
producers said. However, those numbers weakened in the second
half of the month due to panic selling, sources said.
"The price was off 3
cents (per pound) from the previous month for no good reason.
We started off in the 96-cent range and it drifted down as low
as 93.5 (cents) by mid-month," one deox producer said. "We
couldnt come out at those levels and we didnt sell
a lot as a result. We are still seeing reasonably tight scrap,
and at 93.5 cents its a break-even situation. You have
some players that had to come to the table and discount to get
some business, but we were not one of them."
A second producer said
he didnt sell large volumes, but most sales were
completed at around 96 cents per pound. "We are not going to
participate at low numbers," he said. "Well go in and out
depending on market conditions. Losing money is not an
"We cant sell at
below-market prices," a third producer said. "We will continue
to quote, but there is no way we can sell at anything below 95
cents. Its simply not economically feasible."