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UK aluminium scrap prices fall as LME takes toll
Edited by : AL CIRCLE
2 min read
UK aluminium scrap prices fell on Wednesday September 11, prompted by low London Metal Exchange prices that have shackled secondary aluminium and aluminium scrap prices throughout the summer.
“There is no doubt that prices would be higher if not for low LME aluminium prices,” a secondary aluminium ingot producer said.
In the pure grades, group 1 99% & litho and clean HE9 extrusions both fell to £1,080-1,130 ($1,696-1,775) per tonne from £1,100-1,150 previously, while commercial pure cuttings reached £1,010-1,060 from £1,030-1,080.
In the commercial grades, loose old rolled cuttings edged down to £820-850 per tonne from £830-850; baled old rolled fell to £920-950 from £940-970; commercial cast slipped to £980-1020 per tonne from £990-1030; cast wheels reached £1,080-1,130 per tonne from £1,100-1,150; and commercial turnings fell to £750-810 per tonne from £760-820.
Three-month aluminium prices on the LME settled at $1,805/805.5 per tonne in Wednesday’s official session.
Scrap prices have come under pressure not only from low LME aluminium prices, but from the cessation of exports to the Indian market, where currency rates have made buyers uncompetitive.
“There is still scrap demand in India, they just can’t pay the prices,” a scrap dealer said. “With the exchange rate and import taxes, they are $100 out even without the higher freight costs.”
With low LME prices having forced down the price of scrap, secondary aluminium producers – that have struggled for a margin over scrap prices for much of 2013 – now find that there is a margin available even over the purer, more expensive grades of scrap.
With access to a wider pool of scrap metal, they can then put further downward pressure on prices.
“We are able to buy better grades of scrap that would otherwise typically go to primary remelters,” the producer said. “Because of the LME, we’re very competitive on prices. If the LME was $150 higher, it would be a different story.”
Ingot prices were also stable on Wednesday, with LM24 pressure diecasting ingot staying at £1,520-1,570 per tonne and LM6/LM25 gravity diecasting ingot staying at £1,720-1,780.
Spot business has dried up in the UK, with producers having made strong sales on contracts.
“Everyone has got a full order book,” a second producer said. “We’re not interested in spot sales till the end of October.”
“There is no doubt that prices would be higher if not for low LME aluminium prices,” a secondary aluminium ingot producer said.
In the pure grades, group 1 99% & litho and clean HE9 extrusions both fell to £1,080-1,130 ($1,696-1,775) per tonne from £1,100-1,150 previously, while commercial pure cuttings reached £1,010-1,060 from £1,030-1,080.
In the commercial grades, loose old rolled cuttings edged down to £820-850 per tonne from £830-850; baled old rolled fell to £920-950 from £940-970; commercial cast slipped to £980-1020 per tonne from £990-1030; cast wheels reached £1,080-1,130 per tonne from £1,100-1,150; and commercial turnings fell to £750-810 per tonne from £760-820.
Three-month aluminium prices on the LME settled at $1,805/805.5 per tonne in Wednesday’s official session.
Scrap prices have come under pressure not only from low LME aluminium prices, but from the cessation of exports to the Indian market, where currency rates have made buyers uncompetitive.
“There is still scrap demand in India, they just can’t pay the prices,” a scrap dealer said. “With the exchange rate and import taxes, they are $100 out even without the higher freight costs.”
With low LME prices having forced down the price of scrap, secondary aluminium producers – that have struggled for a margin over scrap prices for much of 2013 – now find that there is a margin available even over the purer, more expensive grades of scrap.
With access to a wider pool of scrap metal, they can then put further downward pressure on prices.
“We are able to buy better grades of scrap that would otherwise typically go to primary remelters,” the producer said. “Because of the LME, we’re very competitive on prices. If the LME was $150 higher, it would be a different story.”
Ingot prices were also stable on Wednesday, with LM24 pressure diecasting ingot staying at £1,520-1,570 per tonne and LM6/LM25 gravity diecasting ingot staying at £1,720-1,780.
Spot business has dried up in the UK, with producers having made strong sales on contracts.
“Everyone has got a full order book,” a second producer said. “We’re not interested in spot sales till the end of October.”
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