American Metal Market

Dollar key to ingot strength in Europe: exec.(Scrap)

MUNICH, Germany -- London Metal Exchange aluminum prices will increase in the long term, although that is dependant on a recovery of the U.S. dollar, according to Thomas Reuther, managing director of Trimet Aluminium AG, Essen, Germany.

Reuther attributed the expected hike in LME aluminum to rising capital costs for aluminum smelters, soaring energy and freight costs and further increases in aluminum use, which he said will lead to a shortage of the light metal by 2010.

The European scrap and ingot market is currently in balance due to the weak dollar, which allows European producers access to cheap scrap as merchants are unable to export material, he told delegates at the 15th International Recycled Aluminium Conference hosted by AMM sister publication Metal Bulletin. …

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