17 APRIL 2014Metalbulletin.com
UK Al scrap edging higher on tightness, LME price hike
Edited by : AL CIRCLE
2 min read
UK aluminium scrap prices rose among the pure grades on Wednesday April 16, as scrap markets started to tighten and the recent increase in London Metal Exchange aluminium prices found support.
"The LME has gone up and is holding, so we'll see what happens to prices now," a secondary aluminium ingot producer said.
In the purer grades, there is also pressure from strong bids that sellers reported coming from downstream primary producer Novelis, which began earlier this month.
Group 1 99% & litho rose to £1,050-1,080 per tonne from £1,040-1,070 previously; commercial pure cuttings reached £900-930 per tonne from £880-910; and clean HE9 extrusions climbed to £1,040-1,070 per tonne from £1,030-1,060.
"The pure grades are going up because of the Novelis bids and the rise in LME prices," a second ingot producer said.
Scrap markets are also tightening in the UK and Europe as other markets are offering higher prices.
"There are better prices in the USA and India," a scrap dealer said. "There is a diabolical shortage of scrap in the USA. [Primary producers] are further into those scrap markets than in the UK and Europe."
The commercial grades of scrap have not yet felt the same effects, sources said.
"We've no problem buying scrap within the ranges," a third ingot producer said. "It's not in abundance, but we get what we need."
Ingot prices were also stable on Wednesday, but sellers expect higher price off the back of higher scrap and LME prices.
LM24 pressure diecasting ingot stayed at £1,420-1,480 per tonne, while LM6/LM25 gravity diecasting ingot remained at £1,600-1,650 per tonne.
"Prices have to rise, now that raw material is tightening," the third producer said.
There have been almost no spot deals in April as producers have been confining their efforts to contracted business, though some spot activity was reported this week. But prices will not likely rise ahead of the Easter holiday weekend.
"We picked up a little spot business this week," the third producer said, reporting business at £1,440 per tonne for LM24 ingot.
"But we're conscious of the Easter break coming up," he added.
"The LME has gone up and is holding, so we'll see what happens to prices now," a secondary aluminium ingot producer said.
In the purer grades, there is also pressure from strong bids that sellers reported coming from downstream primary producer Novelis, which began earlier this month.
Group 1 99% & litho rose to £1,050-1,080 per tonne from £1,040-1,070 previously; commercial pure cuttings reached £900-930 per tonne from £880-910; and clean HE9 extrusions climbed to £1,040-1,070 per tonne from £1,030-1,060.
"The pure grades are going up because of the Novelis bids and the rise in LME prices," a second ingot producer said.
Scrap markets are also tightening in the UK and Europe as other markets are offering higher prices.
"There are better prices in the USA and India," a scrap dealer said. "There is a diabolical shortage of scrap in the USA. [Primary producers] are further into those scrap markets than in the UK and Europe."
The commercial grades of scrap have not yet felt the same effects, sources said.
"We've no problem buying scrap within the ranges," a third ingot producer said. "It's not in abundance, but we get what we need."
Ingot prices were also stable on Wednesday, but sellers expect higher price off the back of higher scrap and LME prices.
LM24 pressure diecasting ingot stayed at £1,420-1,480 per tonne, while LM6/LM25 gravity diecasting ingot remained at £1,600-1,650 per tonne.
"Prices have to rise, now that raw material is tightening," the third producer said.
There have been almost no spot deals in April as producers have been confining their efforts to contracted business, though some spot activity was reported this week. But prices will not likely rise ahead of the Easter holiday weekend.
"We picked up a little spot business this week," the third producer said, reporting business at £1,440 per tonne for LM24 ingot.
"But we're conscious of the Easter break coming up," he added.
Previous article
Aleris considers potential sale of recycling and custom alloy unit
Next articleBritish recycler sues Aleris in payment dispute
Grow with
AL Circle
