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JW Aluminum boosting conversion fee

Keywords: Tags  JW Aluminum, Chester Roush, price increase, conversion price, Midwest premium, scrap spreads, flat-rolled aluminum, aluminum scrap


CHICAGO — JW Aluminum Co. plans to increase its conversion price on all alloys by 5 cents per pound effective with new orders April 7 as it mulls "alternate" price methods.

The Mount Holly, S.C.-based specialty flat-rolled aluminum supplier said the price increase is necessary because of higher premiums and freight rates as well as tight scrap spreads resulting from increased scrap consumption by aluminum producers, according to an April 4 letter to customers.

"Due to ongoing trends affecting our raw materials, we’re actively evaluating alternate pricing approaches," chief commercial officer Chester L. Roush said in the letter. "Unfortunately, the flat-rolled products industry as a whole cannot continue to absorb these rising costs."

The letter did not specify what those alternative approaches might be.

Aluminum prices are trading at their highest level of the year while regional premiums, including the Midwest premium, remain near record highs (amm.com, April 4).

At the same time, secondary aluminum producers are battling for scrap (amm.com, April 2) as they look to increase recycled content in a North American market where scrap generation hasn’t kept pace with increased appetites for metal (amm.com, April 2).


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