Surging LME aluminium price squeezes European secondary smelter margins

A surging London Metal Exchange aluminium price continued to push scrap prices higher and pinch European secondary aluminium smelter margins in the week to Friday April 30.

Secondary aluminium ingot prices are under pressure, with shut automotive plants reducing demand for metal, while the higher LME price is raising feedstock costs for ingots.
Purer grades of aluminium scrap, sold on a percentage of the LME, have gained strong support over the past few months from rocketing primary aluminium pricing.
The LME daily official three-month aluminium price was at $2,429.50 on Thursday April 29, its highest since 2018.
“The LME is fired up,” a scrap merchant said, “Prices are increasing in every coming day.”

As a result, the price for HE9 has been pushed to the highest on Fastmarkets records. The aluminium scrap clean HE9 extrusions,...

Published

Justin Yang

Imogen Dudman

April 30, 2021

16:40 GMT

London