European aluminium scrap prices fall on high supply levels

European aluminium scrap prices fell on Friday March 7, as producers continued to source their requirements with little difficulty, despite increased demand for secondary aluminium ingots for the second quarter.

"Scrap prices are resistant to falls, but scrap dealers have to sell eventually so prices are down a little," an ingot producer said.

Mixed turnings fell to €1,060-1,100 ($1,459-1,514) per tonne from €1,110-1,150 previously; floated frag slipped to €1,250-1,300 per tonne from €1,260-1,310; and cast fell to €1,160-1,210 per tonne from €1,170-1,220.

"There has been some reduction in scrap - there are a lot of scrap players and they don't want to be caught holding too much," a second ingot producer said.

Scrap supply has been better than expected in the first quarter as the harsh winter conditions seen over the past two years have not returned this year. The mild winter has meant no significant fall in scrap collection and processing rates.

That supply will be tested in the next few months after ingot producers reported better demand for the second quarter.

"We're very busy with enquiries," the second producer said. "Demand is strong for the second quarter, and volumes will be up by 8-25% for our big customers."

Prices are sluggish, however. Some producers were able to secure slightly higher prices than in previous weeks, but not beyond the Metal Bulletin range.

"The range is flat, but in the past few days we've seen primary aluminium prices go a bit higher, so we've been able to get slightly higher prices," the second producer said. "We've been able to cherry-pick enquiries."

The Spanish market, which has shown considerable weakness alongside the market in Italy, is now showing signs of recovery, sources said.

"Spain's market is recovering and producers are doing better," the second producer said. "Italy has the worst situation [in Europe] right now."

Want to know more about how Metal Bulletin assesses and indexes metal prices? We are running a free online briefing at 3pm UK time, 11am EDT, on Thursday March 13. Click here to register.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.