Secondary aluminium ingot prices down in Europe

Secondary aluminium ingot prices dropped in Europe on Friday November 15, as market participants reported dwindling numbers into the year end.

Metal Bulletin’s quotation for DIN226 pressure diecasting ingot moved down to €1,720-1,780 ($2,315.45-2,396.22) per tonne, from €1,740-1,800 previously.

Only one market participant reported positive sentiment going into 2014 on Friday, while most are expecting further falls.

“Business is not going as well as we would like. The problem is southern Europe – they have problems with capacity and they sell at cheap levels into Germany and central Europe,” a producer said.

“A lot of our clients have said hold off until the end of the year – they don’t want material.”

Meanwhile, other clients are buying only as much as they need in the short term, and have only just come into the market for their December requirements, he said.

“It’s the same situation as one year ago. We don’t have a margin and that’s the problem. It’s hard to produce and make profit,” the producer said.

This could lead to difficulties for some companies, and potentially further shutdowns and liquidations, he said.

Meanwhile, a trader told Metal Bulletin he had seen relatively strong demand going forward, but conceded that southern Europe was not as strong.

“Demand for the first quarter and for the first half of next year is good. The only weakness we have is from southern European producers,” he said.