NEW YORK Prices
for most grades of secondary aluminum smelters scrap
moved higher Jan. 6 as an increase in post-holiday demand
coupled with a slight decrease in supply helped buoy the
market, participants told AMM.
The drop in supply was
largely attributed to the bitterly cold weather across much of
The price uptick ran
counter to recent declines on the London Metal Exchange, where
the cash primary aluminum contract ended the official session
Jan. 6 at $1,717.50 per tonne (77.9 cents per pound), down 2.2
percent from $1,755.50 per tonne (79.6 cents per pound) Jan 2.
The contract recovered slightly Jan. 7, closing the official
session at $1,733 per tonne (78.6 cents per pound).
Market talk of
possible changes in the Midwest premium caused some
participants to express confusion over current market
conditions and overall sentiment.
today," one scrap trader told AMM. "The LME drops, but
we are hearing the premium is moving higher. I dont
One scrap seller noted
that word of possible premium increases "has caused some
confusion on the scrap side. I am not sure if all consumers are
going to follow the premium jump up."
Meanwhile, prices for
secondary aluminum alloys were steady Jan. 6, with buyers and
sellers noting that demand had remained steady through the
holiday season and into the new year.
The recent cold snap
could disrupt the flow of material and delay production
schedules, a source at one Midwest alloy producer said.
"Ive gotten a few calls this morning for extra metal. ...
(Im) wondering if the northern smelters are being
impacted by the weather."
A "modest warming
trend" should make its way to a large part of the Northeast by
Jan. 8, according to the National Weather Service.