Strong demand, tight supply and higher London Metal Exchange aluminium prices have abruptly pushed European secondary aluminium alloy prices to a nine-month high, where they could stay for the coming weeks.
Metal Bulletin assessed the price of DIN226-grade material, duty-paid, delivered in Europe, at ?,?1,800-1,850 ($2,158-2,218) per tonne on Friday January 12. This is up from ?,?1,770-1,820 per tonne the week before. "For the bigger customers, it's more difficult to get material below ?,?1,800," one European secondary producer said. More than 6,000 tonnes of concluded business for DIN226 was reported to Metal Bulletin on Friday and all were above the ?,?1,800 per tonne level. "The crescendo continues. There are some raw materials but not enough production capacities as everyone has a lot of orders," a second producer said. Supply...