If you have aluminum scrap in your inventory, now is a good time to sell it. You should not hold on to it because prices for all aluminum scrap grades (e.g., the mill & secondary grades) are declining. Latest reports showed that there was a decrease in primary metal on the London Metal Exchange (LME). In addition to prices dropping a penny or two below, smelter prices are declining as well. H&C Metals is advising its scrap metal suppliers to sell their: Old Sheet Aluminum, Aluminum Siding, Clean Aluminum, Aluminum Cans, Cast Aluminum & Aluminum Rims & Wheels, etc.
Today’s scrap metal pricing for Aluminum may seem low, but in 30-days from now, current prices may potentially seem strong.
About the London Metal Exchange
The LME is recognized as the global center for industrial metals trading. All prices shown on their three trading platforms are often utilized as the world’s reference price. In fact, both the investment and metal communities use the LME to take on or transfer risk, 24 hours a day.
Understanding Current Aluminum Scrap Prices
The mills specialty consumers’ buying price for some segregated Mill grade aluminum scrap reached their lowest level in more than a decade.
Aluminum scrap metal prices have been steadily declining since about May 2018 due to:
- The continued decline in LME Aluminum pricing
- The strong U.S. economy which results in an over-supply of Aluminum scrap and lower demand from the Mills
- The Tariffs implemented in the Spring of 2018
Some aluminum scrap sellers feel that the terminal markets (LME) seem to be retreating and are taking primary grades lower. Although secondary markets seem to be maintaining their positions, there is still a pessimistic view in the marketplace. Other sellers, who are working hard to get sales off, have noticed that the prices are dropping in accordance to LME levels. For some sellers, they just don’t know where the “bottom” is going to be.
If you are looking to sell your aluminum scrap, H&C Metals is more than happy to help!