Free-market aluminium alloy,scrap prices steady.

April 10, 2012 - 22:57 GMT



Free-market aluminum alloy and scrap prices were flat on Monday as traders reported quiet trading conditions over the Easter holiday weekend.


The cash North American special aluminum alloy contract (Nasaac) on the London Metal Exchange closed the official session at $2,056 per tonne (93.3 cents per pound) Tuesday, down 0.2 percent from $2,060 per tonne (93.4 cents per pound) on April 5.


The LME was closed on Friday and Monday for the Easter holiday weekend, prompting most scrap traders to leave pricing unchanged.


"It's extremely quiet. The LME is closed, it's Easter Monday, people just haven't started up," one scrap trader told AMM on Monday.


"Without having the Nasaac to put a floor on the market, we've got to go with the old price," one alloy producer said.


A second scrap trader forecast that scrap prices would begin to fall in the coming weeks.


"One major producer has been pushing the market (up) on the scrap end. I think prices are going to start coming back a little bit because the spreads have been tight," he said.


Alloy producers have been complaining of tightening margins as tight supply forces scrap prices up, while ingot prices have steadily dropped along with falls in the Nasaac (AMM, April 9).


"There's certainly plenty of business. It's a shame we're being dictated by the LME, which itself is being dictated by events to do with currency and not supply and demand," a second alloy producer said on Monday.




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