Secondary aluminum alloy prices fall again

Free-market aluminum alloy prices suffered further drops this week despite a relatively stable scrap pricing market, with some producers holding the line on higher quotes in pursuit of a profit margin.

A380.1 dropped to a range of 99 cents to $1.01 per pound from $1 to $1.02, while 319.1 eased to $1.05 to $1.06 from $1.05 to $1.07 per pound previously. A360.1 and A413.1 both fell to $1.06 to $1.08 per pound from the prior range of $1.08 to $1.10.

Meanwhile, aluminum used beverage cans (UBCs) eased to 72 to 73 cents per pound picked up from 72 to 74 cents, while 3105 segregated clippings dropped to 77 to 79 cents per pound from 78 to 80 cents.

The cash North American special aluminum alloy contract (Nasaac) closed the London Metal Exchange’s official session at $1,875 per tonne (85 cents per pound) Tuesday, down 2.1 percent from $1,915 per tonne (86.9 cents per pound) Friday.

One die caster told AMM that he had bought Nasaac material at 95 cents per pound, while a second die caster reported buying A380.1 at 98 cents per pound for 10-day payment.

"(The seller) indicated that they thought it may come off a little more, but scrap prices are still high," the second die caster said.

The current intractability of secondary scrap prices is compelling some alloy producers to dig in their heels on sales pricing, even if it means missing business.

We’re quoting at $1.03 per pound for A380.1 and being told that we’re a few cents off," one alloy producer said.

Meanwhile, scrap buyers said that trading activity was still quiet, with many in the market considering their inventory position moving into winter.

"We’re still buying, though not millions of pounds. But we don’t want to," one buyer said.