Home > News > Others

EUROPE ALUMINUM ALLOY: Supply good, prices flat in buyers' market

Wednesday, May 29, 2013
点击:

European aluminum alloy spot prices remained flat this week as both monthly and quarterly consumers keep the pressure on in a well-supplied market.

Producers have been pushing in vain to increase spot levels for the key grade of secondary aluminum, standard 226, above Eur1,700/mt ($2,189/mt) and towards Eur1,750/mt as margins are seriously squeezed by high scrap input costs.

"It's tough at the moment. The volumes are there but prices are holding at the lows," said an East European producer. "Scrap is well-supported and margins are difficult to achieve."

Scrap prices remain high and good quality turnings or tense are difficult to source at competitive prices, even in Germany, the key European market.

A German alloy producer said: "We're struggling with the high scrap prices, low aluminum alloy ingot prices and squeezed margins." Standard 226 spot prices remained stuck at either side of Eur1,700/mt delivered Germany.
"Prices are still around Eur1,680-1,700/mt for big customers," said an Italian producer, who said he was now making higher offers because scrap remains high.

A German consumer agreed that spot prices were still around Eur1,680-1,700/mt. He also said that as the LME alloy price was still low -- around $1,780/mt (Eur1,380/mt) -- "suppliers are increasing their premiums to cover costs."

"My premiums for LME 226 plus cash are Eur250-300/mt," said a European producer, while a trade source said that buying ex-LME warehouse was difficult because most ingot incurred a duty and would take "months" to be delivered.

A large automotive company is to hold an auction May 27 for its Q3 alloy supplies. It is understood to require some 21,000 mt of aluminum alloy (226 and 231) including 6,000 mt in Germany, almost 7,000 mt in Poland, 4,500 mt in Czech Republic and about 1,200 mt in both Spain and Mexico.

Traders reported various spot deals this week. One said he had sold some quantities for June at Eur1,700-1,720/mt and had fixed a sale of 400 mt for July at Eur1,690/mt, including credit. He predicted that prices may well ease to around Eur1,660/mt in August because of summer shutdowns.

A second trader said he had sold 200 mt of 226 at Eur1,720/mt to a small German diecaster and 100 mt of 231 at Eur1,770/mt, both for June delivery. Platts assessment of standard 226 remained unchanged .

Eur1,680-1,730/mt delivered Germany, including 30 days' credit. Prices for grade 231 were also seen steady at Eur1,730-1,780/mt delivered Germany.
 

Recommended exhibitions

16TH ARAB INTERNATIONAL ALUMINIUM CONFERENCE
  ARABAL, which is being organized and hosted by Qatalum, is the premier trade event for the Middle East's aluminium i......
Aluminium 2012
  ALUMINIUM is the leading B2B platform in the world for the aluminium industry and its main applications. This is whe......
The 4th edition of Zak Aluminum Extrusions Expo
 Date

  14th - 16th December 2012

  Venue

  Pragati Maidan,

  New Delhi,India.

  Exhibition Timings

 ......
ALUMINIUM DUBAI 2011
Name:ALUMINIUM DUBAI 2011
Time:2011-5-9 to 2011-5-11
Place:Dubai International Convention & Exhibition Centre, Dubai, UAE......