Now York -- Aluminum ingot premiums have narrows to a range of 3.75 to 4.25 cents per pound from 3.75 to 4.5 cents previous amid sluggish US spot market activity, according to market sources.
"It's definitely slow," one trader said, although he added that he had beeb able to sell spot metal at premium of 4.25 cents per pound. "When the phone rings, we're able to get what we're asking," he said.
A second trader said he also was able to get 4 cents and a bit higher from consumers seeking metal. "It depends on who makes the call," he said. "If a buyer makes the call and needs to buy, the number probably begins with a four. If the seller makes the call and wants to sell, it is a probably 3.75."
A third trader reported similar activity. " We've been selling at 4 cents here and there, but to be honest it's really thin," he said, adding that the primary reason appears to be a sluggish US economy.
A fourth trader supported that view. "New sales are not coming to the fore; the economy is slow," he said. "We're in the doldrums here. It's quite challenging right now. I don't see it picking up for the next 30 days, but hopefully a little down the road we will see a pickup."
Signs of that pickup might be starting to emerge. "Scrap prices are picking up, so the spread between scrap and prime is closing," the second trader said. "This might lead some users to blend more prime into their mix."
The first trader agreed. "Scrap is tightening and the spread to prime is closing," he said. "Consumers are chewing through scrap material faster and people are using more high-purity metal."
Terms can be more favorable for seller based on region. The first trader reported doing a large volume of business in the Southwest at a premium of more than 5 cents per pound." There's very little metal in the Southwest," he said.
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