European aluminium alloy spot price steadies as market reaches floor

<p>Secondary aluminium prices stabilized this week in Europe, appearing to reach a floor after slipping for several weeks. The key grade of recycled aluminium, ingot 226, reached a peak of Eur1,820-1,880/mt delivered plus credit at the start of April and has fallen week by week over the past three months to a low of Eur1,650-1,700/mt delivered at the end of June.</p> <p>Business is beginning to slow down ahead of the summer turnarounds and holidays, sources said.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/alloypipe.jpg" alt="News" width="517" height="204" /></p> <p>Sales to larger consumers this week were heard at around Eur1,650-1,670/mt delivered plus credit, while smaller buyers in some areas were paying over Eur1,700/mt delivered.</p> <p>A monthly buyer seeking September quantities was understood to be looking to achieve under Eur1,650/mt delivered, but sellers were reluctant to move much below this level.</p> <p>&ldquo;We hear buyers seeking low levels of Eur1,640/mt delivered, but at the same time we have succeeded in gaining some orders at above Eur1,700/mt delivered,&rdquo; said a Polish seller.</p> <p>An Italian producer agreed that Eur1,650/mt delivered was the limit for them, but they needed Eur1,700/mt delivered and above given current aluminium scrap costs.</p> <p>{googleAdsense}</p> <p>Buyers have been pushing for lower prices over the past few weeks, citing good availability. A German die-caster said that although he wasn&rsquo;t in the market this week he had heard spot offers at around Eur1,650/mt delivered. &ldquo;I am not sure if this is the bottom of the market, we could possibly see lower in the summer months,&rdquo; he said.</p> <p>S&amp;P Global Platts weekly assessment of standard grade 226 ingot remained unchanged at Eur1,650-1,700/mt delivered Germany, plus credit.</p> <p>Prices for 231 alloy also stayed steady at Eur1,690-1,740/mt delivered Germany, plus credit.</p>