NEW YORK Prices for aluminum deoxidant, or deox, continued to climb in March as a relatively tight scrap market, coupled with strong mill demand, led to "appreciable price advances" for the grade, producers said.
Prices hovered at around $1 to $1.02 per pound in March, according to most major producers. Thats up 1 cent from Februarys eight-month high (amm.com, March 7).
Several producers, however, noted that sales at the end of March slipped slightly despite the increases.
"Deox came out strong in the beginning of the month$1.01 to $1.02 per poundonly to fall to producers that dropped pricing to unsustainable levels once again at the end of the month98 to 99 cents per pound," one producer told AMM.
Other producers said reports of end-of-month panic selling were overblown and that below-market sales hadnt impacted the overall market.
"We averaged $1.02 to $1.03 all month long," a second producer said. "We heard sales under $1 and did not participate in any of those sales. I dont think those low numbers were sold in large enough volumes to affect the entire market."
Price negotiations had "finally shifted in the sellers favor," the producer added.
"The bottom line is its much more of a sellers market than in prior months," he said. "We found very strong demand and were able to do spot business in a very favorable range for most of the month. We expect prices to continue higher in April."