Plummeting UK aluminium ingot prices force smelter closures, production cuts

UK aluminium alloy producers have been forced to close smelters or partially cease production as a confluence of weakening automotive sector demand for material, sluggish regional gross domestic product (GDP) growth and tariff uncertainty continues to push LM24 ingot prices lower.

Market participants have reported rumors that three prominent UK secondary aluminium smelters have ceased operations with others cutting production to shore up supply because downward price pressure is making alloy production unequitable.
“[One big UK producer] at the moment is now producing just 300 tonnes [of LM24 ingot] a week – they have cut production by 50%,” one European producer said.

Fastmarkets assessed the price of aluminium scrap and foundry LM24 gravity diecasting ingot in the UK at £1,240-1,280 per tonne ($1,572-1,623 per tonne) on Wednesday June 26, down from £1,280-1,330 per tonne the previous week.
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Published

Amy Hinton

June 26, 2019

17:31 GMT

London