Alexin LLC Prices Focus on the Future of Secure Supply
CONTACT: Neil Johnson
Alexin LLC Vice President of Marketing and Sales
BLUFFTON, INDIANA, July 30, 2010 - Based on prognostications concerning the supply of aluminum scrap, Alexin LLC has evaluated market trends and adjusted its short-term price outlook.
"Baseline market indicators point to 2011 as being a year of continued tight scrap and higher billet premiums," said Alexin President Tom Horter. "In conjunction with market forces, our sales prices and policies will continue to reflect the overall supply and demand curve. Alexin will continue to book 2011 volume contracts while keeping in mind the individual extruder's desire for secure supply of our high-quality extrusion ingot."
With demand for aluminum scrap on the rise, Horter foresees Alexin's staff of metals professionals working diligently to procure materials.
"While Alexin continues to recognize a significantly poor scrap margin," Horter noted, "we will conduct the necessary due diligence to obtain the metal units required to meet the demands of our clients, even though we believe, strongly, that while comparative industries have changed the way they go to market, extrusion ingot is currently under priced. The past practices of the aluminum industry have outlived their usefulness. The business model, as it currently stands, does not generate the necessary returns required by those who have taken significant risks in supporting extruders."
Horter noted that fundamental scrap units have a significantly higher value than recognized by the LME/MW. For example, in 2009, middlemen in the distribution stream received some revenue for these units. "This simply cannot continue," said Horter.
One area Alexin's management team will immediately address is the cost to provide a cut-to-length product. Long-length log will soon be the baseline used to determine Alexin's future pricing structure. Cut to length billet 21 inches and longer will require a premium of $0.005/lb while lengths shorter than 21 inches will carry a $0.01/lb premium.
To learn more about Alexin's 2011 Extrusion Ingot supply programs or to learn how you can achieve better prices for your extruded product, call either Tom Horter or Neil Johnson at Alexin, 260-846-0745.
On the Web: www.alexinllc.com