US secondary aluminum prices were relatively steady on December 2 on muted market activity after the New Year's Day holiday.
"It's quiet so far," said a producer. "People are trying to figure out what's going on." The producer said he was continuing to sell A380 at 98-99 cents on January 2, the same levels he reported last week.
S&P Global Platts assessed A380 secondary aluminum alloy at 96-98 cents/lb, delivered Midwest, unchanged from the December 28 assessment.
Prices for all other alloys, with the exception of 356 and B390, also held steady at last week's levels.
Rising LME prices, however, contributed to a slight increase in the Platts 356 assessment, which rose to $1.04-1.06/lb from $1.04-$1.05/lb.
A diecaster continued to see the A380 market at 95-97 cents, but had no transactions to report.
"We haven't talked to anyone this morning, so we have nothing new," the source said.
Many sources did not expect pricing to stay static for long, however, due to rising freight, London Metal Exchange and input prices.
Some sources said freight was becoming a growing concern for alloy sellers.
"I moved my A380 price up, due to the trucking situation," said a second trader, adding: "It's hard to get them."
The producer, who thought 356 prices could change in tandem, said, "Secondary 356 prices softened because primary prices went down to around 99 cents to $1.01/lb, and then [primary prices] suddenly went up to $1.11."
A trader agreed. "Now, we have P1020 over $1.11-$1.12, so it's got to bring [the secondary 356] price up, it just has to," he said.
Sources also said the rising cost of silicon, copper and other inputs was starting to affect pricing for some alloys, particularly B390. Platts assessed the alloy at $1.11-$1.13/lb on January 3, up from $1.11-$1.12/lb previously.
"Copper and silicon are expensive, labor is up, transportation is way up, and we're trying to get out of the no-margin environment that has plagued the industry for so long," said a third producer, who was selling B390 at $1.13/lb.
A fourth producer added that, though the scrap market was quiet now, he expected prices to increase in the near future.
"Scrap dealers want more money, especially with this weather," the smelter said, adding: "So we're trying to lay low [for now] to see what's going on."
Prices remained fairly stable in the scrap market, as sources said they were just getting back into the market following the long weekend.
Old cast and old sheet were flat at 58-60 cents/lb, delivered Midwest, and 57-59 cents/lb, respectively. Turnings, too, were unchanged at 56-58 cents.
Mill-grade MLCCs were reported in higher ranges due to the increase in the LME price, pushing the Platts assessment for the grade to 73-75 cents/lb from 72-73 cents/lb last week.
Smelter-grade MLCCs followed suit, rising 1 cent to 62-64 cents from 61-63 cents previously.
One scrap dealer said he saw some secondary scrap prices moving up, noting old cast was as high as 63-64 cents and old sheet at 59 cents, but others said they were not able to achieve those numbers.
"Everyone is trying to figure out what's going on; it's kind of quiet today," said another scrap dealer, who was selling old cast at 60 cents and old sheet at 56-57 cents. "Everyone is sitting back wondering what the next guy is doing. Hopefully tomorrow it picks up," the source said.
Smelter buyers said they were making some purchases at similar levels to last week, but for the most part were out of the market for scrap as they were just getting back to work from the holidays.
Most held their price sheets unchanged on January 2 as they looked into inventory levels and needs.
