10 OCTOBER 2011China Aluminium Network
SCRAP REACHES FLOOR, EYES Q1 DEMAND
Edited by : AL CIRCLE
2 min read
Scrap input prices have come down over the past couple of months and have "found a floor," said an Italian alloy producer, adding: "It's not possible to push prices down any further otherwise we will be suffering again." Prices for scrap in Germany were said to be flat. Scrap buyers would be closely watching the LME for price developments, said an alloy producer.
"Scrap prices are quite stable in Germany," said another alloy producer, who added that because of this he saw little downward movement in alloy.
The market was awaiting 2012 discussions for direction on alloy demand and pricing. Most talks were expected to begin end-Oct/early November, sources said.
"The car manufacturers are still positive for next year's production levels but they can cut output very fast," warned a German alloy supplier.
An alloy buyer said that it was impossible to predict 2012 demand but said even if it was lower than this year there would be "no reason to panic" as 2011 has been very strong.
In news, UK carmakers lowered their expectations for new passenger car sales in 2011 and 2012 due to weak domestic demand and economic uncertainty, although September registrations came in at a higher-than-expected 332,476 units, the Society of Motor Manufacturers and Traders said Thursday.
The industry group now predicts domestic sales in 2011 to fall 5.3% to 1.92 million, compared with its previous estimate of 1.93 million, and to reach 1.96 million in 2012, 45,000 units fewer than its earlier projection.
"Scrap prices are quite stable in Germany," said another alloy producer, who added that because of this he saw little downward movement in alloy.
The market was awaiting 2012 discussions for direction on alloy demand and pricing. Most talks were expected to begin end-Oct/early November, sources said.
"The car manufacturers are still positive for next year's production levels but they can cut output very fast," warned a German alloy supplier.
An alloy buyer said that it was impossible to predict 2012 demand but said even if it was lower than this year there would be "no reason to panic" as 2011 has been very strong.
In news, UK carmakers lowered their expectations for new passenger car sales in 2011 and 2012 due to weak domestic demand and economic uncertainty, although September registrations came in at a higher-than-expected 332,476 units, the Society of Motor Manufacturers and Traders said Thursday.
The industry group now predicts domestic sales in 2011 to fall 5.3% to 1.92 million, compared with its previous estimate of 1.93 million, and to reach 1.96 million in 2012, 45,000 units fewer than its earlier projection.
Previous article
European aluminium alloy 226 lower, negative sentiment creeps in
Next articleUS aluminum scrap prices said on fragile ground
Grow with
AL Circle
