21 NOVEMBER 2013Metalbulletin.com
UK Aluminium scrap prices fall as merchants plan holidays
Edited by : AL CIRCLE
2 min read
UK aluminium scrap prices fell on Wednesday November 20, as much of the market seemed to shut up shop ahead of the year-end, and aluminium ingot business remains confined to previously contracted deals.
“It’s as if people have written off the rest of the year,” one ingot producer said. “There are very good projections for next year, but it’s as if this year’s been forgotten.”
Scrap dealers, faced with weakening prices, are in some cases opting to hold on to their material rather than selling it into a falling market. Such companies are encouraged by projections of scrap tightness next year leading to higher prices.
“It’s a case of ‘do we sell at these prices or do we sit on it?’,” a scrap dealer said. “The prices offered are down – and down by a fair bit – and we want some material around in January to take advantage of any upturn.”
Prices are being pressured by low London Metal Exchange aluminium prices and very low scrap prices in Europe.
Group 1 99% & litho and clean HE9 extrusions both fell to £1,070-1,090 ($1,723-1,755) per tonne from £1,080-1,100 previously, while commercial pure cuttings dipped to £970-1,000 per tonne from £970-1,010.
In the commercial grades, loose old rolled cuttings fell to £780-800 per tonne from £800-820 previously; cast wheels slipped to £1,050-1,100 per tonne from £1,080-1,130; commercial turnings reached £720-750 per tonne from £720-750; and group 7 turnings fell to £520-570 per tonne from £530-580.
“There’s not too much good news out there,” a second ingot producer said. “European prices are tough. Scrap prices have fallen, but ingot prices are under pressure too.”
High-grade LM6/LM25 gravity diecasting ingot fell to £1,690-1,730 per tonne from £1,700-1,740 previously, following a dip in LM24 pressure diecasting ingot prices last week.
Business into Europe has dried up as prices on offer in the continent offer no margin to UK producers.
“It’s dead into Europe. I’m not sure what will happen there next year,” a third producer said.
“It’s as if people have written off the rest of the year,” one ingot producer said. “There are very good projections for next year, but it’s as if this year’s been forgotten.”
Scrap dealers, faced with weakening prices, are in some cases opting to hold on to their material rather than selling it into a falling market. Such companies are encouraged by projections of scrap tightness next year leading to higher prices.
“It’s a case of ‘do we sell at these prices or do we sit on it?’,” a scrap dealer said. “The prices offered are down – and down by a fair bit – and we want some material around in January to take advantage of any upturn.”
Prices are being pressured by low London Metal Exchange aluminium prices and very low scrap prices in Europe.
Group 1 99% & litho and clean HE9 extrusions both fell to £1,070-1,090 ($1,723-1,755) per tonne from £1,080-1,100 previously, while commercial pure cuttings dipped to £970-1,000 per tonne from £970-1,010.
In the commercial grades, loose old rolled cuttings fell to £780-800 per tonne from £800-820 previously; cast wheels slipped to £1,050-1,100 per tonne from £1,080-1,130; commercial turnings reached £720-750 per tonne from £720-750; and group 7 turnings fell to £520-570 per tonne from £530-580.
“There’s not too much good news out there,” a second ingot producer said. “European prices are tough. Scrap prices have fallen, but ingot prices are under pressure too.”
High-grade LM6/LM25 gravity diecasting ingot fell to £1,690-1,730 per tonne from £1,700-1,740 previously, following a dip in LM24 pressure diecasting ingot prices last week.
Business into Europe has dried up as prices on offer in the continent offer no margin to UK producers.
“It’s dead into Europe. I’m not sure what will happen there next year,” a third producer said.
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