NEW YORK Secondary aluminum alloys were mostly stable March 27 as sources said the market held strong despite notable drops in some aluminum scrap grades, including twitch, a nonferrous auto shred and a key component in alloy output.
Twitch prices fell to 81 to 82 cents per pound from 82 to 84 cents, market players told AMM, attributing the weakness in part to upticks in zorba supply due to falling international demand, particularly from China (amm.com, March 26).
But alloy producers said lower raw material costs have yet to impact secondary alloys, primarily due to spiking demand from the auto sector and higher shipping costs.
I sold two loads of A380.1 yesterday at $1.09 (per pound), one major alloy producer said. The demand level is strong.
The producer added that increases in the London Metal Exchanges North American special aluminum alloy contract (Nasaac) could make demand for producer metal even greater. I am trying to understand the recent rise in Nasaac, he said. I would imagine Nasaac is pretty pricey today as compared with the smelters price, unless the traders are taking less for a premium? Really dont think thats the case, so demand for producer metal should be strong, keeping the price up.
The Nasaac cash contract closed the LMEs official session at $1,975 per tonne (89.6 cents per pound) March 28, up 4.8 percent from $1,885 per tonne (85.5 cents per pound) March 24.