Aluminium’s scrap price has broken the £1,000 per tonne mark for the first time since 2006.
Investors are once again flocking to precious metals and this pushed the price of virgin aluminium on the London Metal Exchange to above $2,800 per tonne (around £1,700 per tonne) this week, which has in turn impacted on scrap prices.
Alupro executive director Rick Hindley said scrap prices for the metal were at their highest levels ever, and this was driven by more than simply the high price of virgin aluminium.
“I have heard reports suggesting trading is well over £1,000 per tonne,” he said.
“This seems to be the highest price it has ever been. Demand is coming from various industries, not just from the packaging industry. It seems that from a sustainability point of view, businesses are more likely to use scrap in place of virgin materials because it is being recycled [and is therefore a more sustainable option].”
Following a number of negative economic indicators, such as credit ratings agency Standard & Poor’s downgrading US national debt, virgin precious metal prices across the board have been on the rise, with investors regarding them as a safe haven from the stock market.