One of the main drivers of the increase in prices is the return of market participants in China and other Asian countries looking to Europe for scrap supply.
That trend was sparked by the announcement of new aluminium scrap quotas
for China in December, allowing 275,000 tonnes of material to be imported into the country.
“We knew as soon as the Chinese got a quota for the first quarter they were going to enter the scrap market and make a big noise,” one producer in Europe said. “The Chinese have got a quota for the first quarter. Having disappeared from the market, they are now covering their needs.”
Fastmarkets assessed aluminium scrap floated frag, delivered consumer Europe
, at €880-950 ($978-$1,056) per tonne on Friday January 10, up from €840-890 per tonne a week earlier.
Aluminium scrap cast, delivered consumer Europe, also rose to €780-820 per tonne,...