NEW YORK Prices
for most grades of secondary aluminum smelters scrap
continued to rise in the past week, buoyed by higher exchange
prices and a spike in U.S. Midwest aluminum premiums.
"You are seeing higher
prices on items because of the premium," one scrap trader told
AMM, "although the consensus is that the premium will
come down sometime soon."
spot P1020 premium increased to 19 to 20 cents per pound Jan.
15 from 15 to 16.5 cents a week earlier and up about 66 percent
from 11.5 to 12 cents in late December.
included twitch, a high-grade nonferrous auto shred, which rose
to 79 to 81 cents per pound from 76 to 78 cents, and used
beverage containers (UBCs), which jumped to 75 to 77 cents per
pound from 70 to 72 cents.
"There is a major
buyer that was buying twitch in the neighborhood of 78 cents
two days ago," the trader said Jan. 16. "Today, they
reluctantly said they would go up to 80 (cents). They have
moved it up to 80 cents but have said they would not go a penny
higher." The trader added that he had heard prices from smaller
buyers in a range of 81 to 82 cents per pound.
"Wow! Premium is just
causing much pain," one UBC buyer told AMM in an
e-mail. "Today we are at 79 cents per pound delivered but
hearing higher." The buyer noted that his prices had risen
nearly 5 cents over the past week. "I have not seen things move
this quickly in quite some time."
The primary aluminum
cash contract on the London Metal Exchange ended the official
session Jan. 16 at $1,752 per tonne (79.5 cents per pound), up
2.1 percent from $1,716 per tonne (77.8 cents per pound) Jan.
Meanwhile, prices for
secondary aluminum alloy were all up 1 cent Jan. 16, with
sellers noting that "the time was ripe to push prices
Prices for A380.1
moved up to $1.03 to $1.05 per pound, 319.1 increased to $1.08
to $1.09, 356.1 rose to $1.09 to $1.10 and low-copper A360.1
and A413.1 alloys increased to $1.09 to $1.11 per pound.
"I started the week
selling a few loads at $1.04 per pound for 380, but I am now
getting $1.05," one major alloy producer said.