Platts
Demand for aluminum alloy in Europe is steady, prices stay under pressure
Edited by : AL CIRCLE
2 min read
Demand for aluminum alloy in Europe increased this week as buyers re-entered the market for fresh supplies after the winter break having kept stocks to a minimum at the end of the year. Spot prices, however, remained under pressure losing a further Eur10/mt ($13/mt) the week ended January 18.
"It's definitely busier than the week before but prices are weaker," said a trader, who cited low sales prices from sellers in Spain and Italy, countries where car sales and production have suffered more acutely from the economic downturn, as one of the main cause of lower ingot prices.
An Italian alloy producer said that he had sold some 226 at Eur1,710/mt for delivery into East Europe but that for new sales into Germany he was continuing to offer at Eur1,750/mt.
A number of small-medium sized buyers were understood to have been seeking 226 in the German market this week and sales were seen at an average of Eur1,720-1,730/mt.
A smaller buyer said that he didn't require material just yet but that if he needed 100 mt or so he would expect to get a delivered Germany price of around Eur1,720-1,730/mt.
The Platts assessment for the key traded aluminum alloy, standard-grade 226, eased back to Eur1,700-1,750/mt delivered Germany, including 30 days' credit, down Eur10/mt from Eur1,710-1,760/mt the previous week.
After receiving a boost in early January by news that US congress had avoided the "fiscal cliff", LME metals prices pulled back during the third week in January.
The LME cash settlement price for primary aluminum was $2,003.50/mt January 17, down $71 from $2,074.50/mt a week earlier on January 10 and $28.20 below from $2,032/mt four weeks earlier on December 20.
Aluminum alloy's cash settlement price on the LME was $1,792/mt January 17, down $93 from $1,885/mt a week earlier but registered a $118 decline from $1,910/mt four weeks earlier.
"It's definitely busier than the week before but prices are weaker," said a trader, who cited low sales prices from sellers in Spain and Italy, countries where car sales and production have suffered more acutely from the economic downturn, as one of the main cause of lower ingot prices.
An Italian alloy producer said that he had sold some 226 at Eur1,710/mt for delivery into East Europe but that for new sales into Germany he was continuing to offer at Eur1,750/mt.
A number of small-medium sized buyers were understood to have been seeking 226 in the German market this week and sales were seen at an average of Eur1,720-1,730/mt.
A smaller buyer said that he didn't require material just yet but that if he needed 100 mt or so he would expect to get a delivered Germany price of around Eur1,720-1,730/mt.
The Platts assessment for the key traded aluminum alloy, standard-grade 226, eased back to Eur1,700-1,750/mt delivered Germany, including 30 days' credit, down Eur10/mt from Eur1,710-1,760/mt the previous week.
After receiving a boost in early January by news that US congress had avoided the "fiscal cliff", LME metals prices pulled back during the third week in January.
The LME cash settlement price for primary aluminum was $2,003.50/mt January 17, down $71 from $2,074.50/mt a week earlier on January 10 and $28.20 below from $2,032/mt four weeks earlier on December 20.
Aluminum alloy's cash settlement price on the LME was $1,792/mt January 17, down $93 from $1,885/mt a week earlier but registered a $118 decline from $1,910/mt four weeks earlier.
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