NEW YORK Prices for
deoxidized aluminum rose slightly in March, but manufacturers
are still struggling to turn a profit at current levels, market
Most producers logged sales in a
range of $1 to $1.01 per pound in March, up a penny on the low
end from February, and some sources told AMM that they
were still waiting for prices to increase before they enter the
"We were selling at about $1.01
in March. ... A lot of quotes came in, but we didnt do a
whole lot of business. We really need be in the $1.03 to $1.04
range to make any money," one deox producer said.
"To the disappointment of
everyone, discounting seemed to prevail this month," a second
producer said. "Its a very competitive market right now.
Even though most sales were in the $1 range, people know that
we cant make money at anything below $1.03."
Other sources noted that
weakening terminal markets should eventually bring scrap prices
down, which will lower deox production costs.
"Volumes are fine, and it
doesnt make sense why people are discounting," a third
producer said, noting that he had heard scrap was falling but
had yet to receive lower quotes from dealers.
"April should be an interesting
month," a fourth producer said. "If the (London Metal Exchange)
continues to slip away, it will definitely have an effect on