Market
April 16, 2024
Non-ferrous price spreads tighten
Written by Gabriella Vagnini
What can I say, when LME cash to April moved yesterday from 18 contango into a backwardation at 36, things are going to get tight.
Spreads are tightening as well. Mills are still flexible with their prices since stock is scarce. Non-ferrous scrap is still a slow go. People aren’t seeing much of it and everyone wants to know why. Slow imports, manufacturers slow, but there seems to be more to it. Who ever was holding their metal for better prices have let all that metal go.
What we are seeing in the market is unique, and word is that it will ease up and metal will start flowing in Q2. From my perspective, we will see this continue to the beginning of Q3, just in time for the new deals for contracts to be made.
| Aluminum (MWUSTP $1.35/lb, LME 3M $2560/mt) | Spread |
|---|---|
| 1100 Bare | 81% |
| 3003 | 84% |
| 5052 Bare | 86% |
| 6061 Turnings | 62% |
| 6061 Sheet/Plate/Clip | 70% |
| 10/10 Extrusion | 72% |
| 6063 Bare Extrusion | 83% |
| EC Chops | 84% |
| EC Wire | 85% |
| Irony Extrusion – 95/5 | 67% |
| Litho | 75% |
| MLC | 69% |
| Old Sheet | 60% |
| PAS | 69.5% |
| Car Rims – Clean (Limited) | 81% |
| UBC | 68% |
| Wheels – Dirty | 75.5% |
| Copper | |
|---|---|
| Bare Bright | – 0.12c |
| #1 Copper | – 0.20c |
| #2 Copper Shredded roughly 92% | – 0.34c |
| ICW #1 (x recovery + processing 10c) | – 0.20c |
| ICW #2 (x recovery + processing 10c) | – 0.33c |
| Birch/Cliff | – 0.31c |
| Copper Rads | – 0.42c |
| Copper Chops | – 0.29c |
