European aluminium alloy spot price steadies as market reaches floor

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.

Business is beginning to slow down ahead of the summer turnarounds and holidays, sources said.

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.

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.

“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,” said a Polish seller.

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.

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Buyers have been pushing for lower prices over the past few weeks, citing good availability. A German die-caster said that although he wasn’t in the market this week he had heard spot offers at around Eur1,650/mt delivered. “I am not sure if this is the bottom of the market, we could possibly see lower in the summer months,” he said.

S&P Global Platts weekly assessment of standard grade 226 ingot remained unchanged at Eur1,650-1,700/mt delivered Germany, plus credit.

Prices for 231 alloy also stayed steady at Eur1,690-1,740/mt delivered Germany, plus credit.