UK secondary aluminium market expects ingot bounce-back as margins tighten

UK aluminium scrap prices have continued to rise on a strong London Metal Exchange price and a lack of supply in the region, squeezing secondary aluminium margins further, Fastmarkets heard on Thursday May 6.

Despite the adverse conditions for secondary aluminium ingots, market participants expected there to be a strong rebound when automotive assembly lines restart operations after the production stoppages that have resulted from the lack of semiconductor chip components in recent weeks.
The price of aluminium, cash, LME Daily Official, was $2,446 per tonne on April 5, its highest since 2011. Prices for the primary grade were being pushed upward by tight supply and market expectations of the global commodities super cycle, in which all metals are trading above their long-term price trends.

Published

Justin Yang

Imogen Dudman

May 06, 2021

14:18 GMT

London