NEW YORK Prices
for secondary aluminum alloy A380.1, primarily used in
automotive production, have risen over the past week due to
unfavorable margin conditions and unprecedented demand,
producer sources said.
Most producers put the
price for A380.1 in a range of $1.02 to $1.05 per pound, with
one major producer reporting sales at between $1.055 and
"Its a function
of the current scrap market and demand is really good. We
havent had any margins for the last eight months, and now
that volume is back we want a margin," one producer source told
AMM. "Were not doing this so we can break even
every month. $1.02 is our absolute minimum but we have sold
several loads at $1.03."
A second producer
source indicated that he had heard higher numbers but had yet
to achieve sales at improved levels. "If anything, the bottom
range has come up a little bit," he said. "There is some
perceived scrap tightness and the auto companies are running
pretty hard. If auto demand increases further it could cause a
shortage of alloy, which would give a boost to prices."
Meanwhile, all other
secondary alloys were unchanged at the end of the week,
although some producers said that if consumers continue to push
for material and terminal markets continue to rise, most alloy
prices will eventually follow suit.
The primary aluminum
cash contract on the London Metal Exchange ended the official
session Aug. 15 at $1,842.50 per tonne (83.6 cents per pound),
up 0.5 percent from $1,832.50 per tonne (83.1 cents per pound)
Aug. 12. The contract moved even higher Aug. 16, closing at
$1,876.50 per tonne (85.1 cents per pound).
The LMEs cash
North American special aluminum alloy contract (Nasaac) settled
Aug. 15 at $1,826 per tonne (82.8 cents per pound), down 0.2
percent from $1,830.50 per tonne (83 cents per pound) Aug.