LONDON Aluminum scrap prices in Europe remained flat Oct. 4, despite falling in the United Kingdom, as secondary aluminum producer margins remained under pressure.
U.K. scrap prices have fallen over the past two weeks as unfavorable exchange rate movements, particularly Indias rupee and the U.S. dollar, have rendered most non-European export markets uncompetitive.
However, prices in Europe remained stable as both supply and demand have flattened.
Ingot prices also were stable at 1,780 to 1,840 ($2,422 to $2,503) per tonne, with producers refusing deals below 1,800 ($2,450) per tonne.
With good volumes already booked for the fourth quarter, many producers are in a position to turn business down. "Were fully booked for the fourth quarter; volumes are good and stable," one producer source said. "Theres no need to sell, so well only sell above 1,800."
With no reduction in scrap prices, producers have little choice but to hold out for higher numbers.
A version of this article was first published by AMM sister publication Metal Bulletin.