UK secondary aluminium prices stable as Europe brightens at last

UK secondary aluminium ingot prices were broadly flat on Wednesday March 12, as sellers reported better prices from the European market, where a weak euro has deterred UK exports so far this year.

LM24 pressure diecasting ingot stayed at £1,420-1,480 ($2,362-2,461) per tonne, while LM6/LM25 gravity diecasting ingot narrowed to £1,600-1,630 per tonne from £1,600-1,650.

"We're still very busy. UK auto manufacturers are very, very busy," one producer said. "Our contract customers are taking their usual requirements, and in some cases are taking more than that."

UK spot activity has been very light this year as producers have focused much of their work on filling contracted tonnages. Spot sales into Europe have been almost non-existent due to low prices there, but that may be beginning to change.

"There are better European prices and we've sold some there this week," a second producer said, adding that prices for UK sellers in Europe have risen by as much as £50 per tonne in the past week.

"It's a natural reaction to prices hitting rock bottom, and also because the euro moved to €1.220 [to the sterling] from €1.195," the second producer said.

Scrap prices were also stable this week, with the exception of commercial pure cuttings which narrowed to £880-910 per tonne from £880-930 per tonne.

"We're still trying to get the scrap prices off a bit more. In some cases we succeed, in others we don't," the first producer said.

Scrap dealers had expected higher prices at this stage, but a mild winter - meaning scrap collection was not disrupted - and the weak euro - meaning there was no demand for scrap to feed European sales - has kept up adequate supplies of scrap aluminium.

"Supply doesn't seem to be a problem, unfortunately," a scrap dealer said.