Gains in non-ferrous auto shred (twitch) prices in the United States have whittled the spread to benchmark A380.1 aluminium to an over 20-month low.
Fastmarkets AMM's assessments for non-ferrous auto shred (twitch) prices increased to 56.5 to 58.5 cents per lb on Thursday March 21, while benchmark A380.1 prices were steady at 83-85 cents per lb, sending the spread between both grades to 26.5 cent per lb - the narrowest level since July 2017. This spread has slimmed significantly through the first quarter of 2019 after hitting a nearly 10-year high of 47 cents per lb in September.Market participants attributed the moderate increases in twitch prices this month to a combination of firm demand and sustained pressure from Chinese buyers in the lead up to impending Chinese import restrictions - and a rumored quota system - that are set to take effect on July 1."We bought from a few producers at higher...