Real Alloy shuts some plants amid auto shutdowns

Real Alloy, the largest North American producer of secondary aluminum, will temporarily halt production at some of its plants in response to automaker shutdowns.

The company will suspend specification alloy production at plants in Coldwater, Michigan; Wabash, Indiana; and Mississauga, Ontario, as of today until further notice, a representative from Real told Argus.

Real's tolling and deox businesses remain uninterrupted for now, as those units are not directly exposed to automotive.

The idling comes on the heels of Toyota captive smelter, Missouri Smelting Technology (MOST), confirming to scrap suppliers this week that it will stop alloy production into April. MOST is the second-largest specification aluminum alloy producer in the US by volume.

Closures at Real and MOST will put pressure on US prices for scrap grades consumed by secondary smelters such as old cast, old sheet and twitch. Prices for all three of these items fell to their lowest levels since January when assessed yesterday.

All major automakers remain idled in the US to help slow the spread of the coronavirus. Ford said yesterday it plans to restart some operations by mid-April.

By John Betz