Aluminum Supplement

SECONDARY ALUMINUM PRICES STABILIZING?

Has the price of aluminum scrap leveled off? While LME inventory figures reveal that the overall aluminum scrap supply may be even tighter than it was in 1997, LME per-pound pricing dropped slightly in early 1998. The price consumers are paying for aluminum scrap may not be as high as processors would prefer, but at the same time, demand has been steady enough to keep the market from over-reacting to troubles in Asia. Most analysts interviewed by Recycling Today for last month’s focus on aluminum scrap (“Aluminum Casts A Nervous Eye Toward Asia,” March 1998 RT, pg. 64) accurately predicted that prices would lower slightly in reaction to events in Asia. They are also looking prescient with predictions that prices would stabilize before reaching 60 cents per pound.

1997 FINISHES STRONG

Aluminum product shipments were greater in December 1997 compared to December 1996, adding further strength to year-end figures. U.S. aluminum mills shipped 7.4 percent more product in 1997 compared to 1996. While the difference in product exported was not great, the pace of domestic demand outstripped export figures.

Mirroring the overall gain in activity, the U.S. also imported more aluminum ingots and product in 1997, up 8.5 percent over 1996.

GET THE LEAD OUT

The Aluminum Association is part of an industry-wide effort to decrease the presence of lead in aluminum alloys. Lead is contained in certain aluminum alloys for qualities pertaining to machinability. Both Alcoa and Reynolds Metals have introduced unleaded alloys that the companies claim offer identical or better machining and corrosion-resistance characteristics than their leaded counterparts. A rating system has been developed by The Aluminum Association to rate the new alloys.