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 $1.06.
"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. 12.