23 SEPTEMBER 2011Metal Bulletin
CURRENCIES: UK secondary aluminium market too small to protect against euro changes
Edited by : AL CIRCLE
1 min read
The UK secondary aluminium market is too small to absorb all the material produced there, giving manufacturers little protection when a falling euro saps their sterling revenues on sales into the continent.
The euro is at 1.15 to the pound, from 1.108 at the start of the third quarter, according to the Bank of England. Its highest level this quarter was 1.161 on September 12.
Producers looking to sell into the continent in euros but paying costs in sterling have been feeling the ill-effects of such currency moves.
“Currencies will always have an impact – we’ve not seen big moves in the euro price [of ingot] but, compounded with the currency moves, the price has dropped significantly,” a UK-based producer said.
The euro is at 1.15 to the pound, from 1.108 at the start of the third quarter, according to the Bank of England. Its highest level this quarter was 1.161 on September 12.
Producers looking to sell into the continent in euros but paying costs in sterling have been feeling the ill-effects of such currency moves.
“Currencies will always have an impact – we’ve not seen big moves in the euro price [of ingot] but, compounded with the currency moves, the price has dropped significantly,” a UK-based producer said.
Previous article
North American Recycling, Llc Offers An Excellent Recycling Service
Next articleMarket weak on sluggish industrial demand
Grow with
AL Circle
