NEW YORK Prices for high-grade twitch, a nonferrous auto shred, have fallen slightly over the past month, with market players warning that further declines could loom for December.
Most sources contacted by AMM pegged the price for twitch at around 77 to 79 cents per pound, down from 78 to 80 cents per pound in the middle of October.
Buyers are taking a closer look at inventory levels as the year comes to a close, one trader said. "Business is still good, but volume is down from the summer," he said. "I spoke to a major twitch consumer today and they gave a sideways number to down a penny from last month. Their overall sentiment is that there may be more material available."
The trader added that news of Bermco Aluminums temporary shutdown (amm.com, Nov. 4) , could make twitch more plentiful over the next three to four weeks. "You will probably see the price head down as more material gets offered," he said.
Twitch prices are largely based on molten demand in the South, one buyer said. "With Bermco out, there could be a glut of material on the market. We are anticipating a slow reduction in pricemaybe 2 to 3 cents per poundby the end of the year."
A glut of material could be compounded by a seasonal slowdown at major smelters, he added. "Its a weird time of year right now," the buyer said. "Major producers are looking to reduce inventories and raise cash for their fourth-quarter balance sheets.