Aluminum - UBC (Aluminum Cans) 2 (1)

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.

(MWUSTP $1.35/lb, LME 3M $2560/mt)
1100 Bare81%
5052 Bare86%
6061 Turnings62%
6061 Sheet/Plate/Clip70%
10/10 Extrusion72%
6063 Bare Extrusion83%
EC Chops84%
EC Wire85%
Irony Extrusion – 95/567%
Old Sheet60%
Car Rims – Clean (Limited)81%
Wheels – Dirty75.5%
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

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