UK aluminium alloy and scrap prices were steady over the past week after alloy producer profit margins were squeezed further on scrap supply shortage last week, as scrap markets continued to tighten across the world.

Argus' weekly assessment for cast scrap prices stayed at £1,350-1,400/t delivered to customers today, while commercial turnings scrap remained at £1,100-1,150/t. Old rolled scrap prices were steady at £1,280-1,330/t, and aluminium wheels scrap prices stayed at £1,750-1,800/t.

Scrap prices increased in the UK and in continental Europe last week as supply remained tight, which is unlikely to change in the medium term and has led some to consider production cutbacks in response to margins that have drifted into negative territority for many producers.

Alloy prices were also flat this week, on an overall lack of spot business. Argus' assessment for LM24 grade alloy prices remained stable at £2,050-2,100/t delivered to UK consumers today. 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 moved in tight ranges this week and are unchanged today from a week ago. LME three-month aluminium prices settled at $2,448/t in today's official session.