ISRI panelists spotlight US Midwest Aluminum price spreads
The panelists at the Institute of Scrap Recycling Industries (ISRI) 2014 Convention at Las Vegas discussed the price spreads of Aluminum
WASHINGTON (Scrap Monster): The panelists at the Institute of Scrap Recycling Industries (ISRI) 2014 Convention at Las Vegas discussed the price spreads of Aluminum. The gain in the US Midwest Aluminum prices was talked about at the Aluminum spotlight session. The experts also noted that the global finished and primary aluminum prices have remained relatively stable during the past 12-months period.
The session was moderated by Matt Kripke of Ohio-based Kripke Enterprises, who pointed out that the Midwest premium price of aluminum has surged to as high as 17 cents per pound against LME prices during latter period of 2013 and early-2014.
Mike Southwood, CRU Group, estimated the aluminum supply deficit in the US during the period to nearly 3.5 millionn tons per year. According to Southwood, the high price spreads was mainly caused by the huge deficit in the market. He further said that the global aluminum production failed to keep pace with the rebounded demand in the market.
The imports from Russia and the Middle East countries may fill the deficit gap. Retrieval of aluminum from LME warehouses is yet another option, but news reports indicate that the notable delay at warehouses is a major roadblock to this alternative.
The CRU Group forecast the aluminum price to average around $1,762 per metric ton during 2014.
Edward Meir of INTL FCStone expressed concerns over Chinese oversupply. However, he projected aluminum prices to remain strong near $1,800 per metric ton during the year.