North American aluminum based scrap offer price surges

International market price is surging for shredder mix metal which is majorly used by Chinese secondary aluminum alloy makers as one of the main materials.

North American exporters currently offer CIF USD 1,830 per tonne to USD 1,860 per tonne against major importer of Chinese users which was around USD 100 than the offer price at the end of 2011. Chinese secondary aluminum alloy makers mostly procure shredder mix metal from North America.

The offer price increased along upsurge of primary aluminum and electrolytic copper market prices since the beginning of the year. North American exporters' offer price against Japanese customers is CIF USD 1,820 per tonne to USD 1,840 per tonne for Tense and CIF USD 1,780 per tonne to USD 1,820 per tonne for Taint Tabor both of those which increased by around USD 100 from the yearend.

The offer price is pushed by the demand increase in North American market. Secondary aluminum alloy makers in North America are said to keep high operations rate thanks to steady car production by American automakers. Local secondary aluminum alloy makers aggressively procure shredder mix metal and other aluminum based scrap.

Meanwhile, aluminum based scrap supply maintains low in winter. The supply and demand balance is tightening. Japanese trader source suggests the offer price is likely to surge more in a short term. Chinese secondary aluminum alloy makers are gradually raising their offer prices against Japan to reflect market price upsurge of primary aluminum and aluminum based scrap. Chinese largest secondary aluminum alloy maker, Shanghai Sigma Metals currently offers USD 2,370 per tonne to USD 2,380 per tonne for AD12.1 grade alloy.