UK aluminium scrap prices increased over the past week on supply tightness, as large volumes of aluminium scrap continue to be exported to Asia, drawn by the higher prices on offer, while alloy prices edged down on weak overall demand to further pressure alloy producer margins.

Argus' weekly assessment for cast scrap prices climbed to £1,350-1,400/t delivered to customers today, from £1,300-1,350/t previously, while commercial turnings scrap reached £1,100-1,150/t from £1,050-1,100/t and aluminium wheels scrap prices rose to £1,750-1,800/t from £1,720-1,770/t. Old rolled scrap prices were steady at £1,280-1,330/t.

Scrap prices also increased in Europe this week as supply remains tight, which is unlikely to change in the medium term and has led some to consider production cutbacks given often negative margins. "It will become the survival of the fittest," one producer said.

Alloy prices edged down this week. Argus' assessment for LM24 grade alloy prices fell to £2,050-2,100/t delivered to UK consumers today, from £2,070-2,120/t previously. LM25 prices stayed at £2,450-2,500/t and LM6 alloy prices were steady at £2,475-2,525/t.

London Metal Exchange (LME) aluminium prices fell slightly over the past week. LME three-month aluminium prices settled at $2,448/t in today's official session, down by just 0.77pc from $2,469/t a week ago.

Earlier today US president Donald Trump said he is recommending a 50pc tariff on all goods from the EU being imported to the US from the start of next month. Trump had initially proposed a 20pc tariff on most EU goods, but later halved that to 10pc until 8 July.