How to Save on Rising Aluminum Foundry Premiums
Aluminum foundry premiums are on the rise in Europe, the United States and in Turkey. In Europe, premiums in Germany have hit record highs not seen since March. In Turkey, numbers are at their highest since May, and in the United States, they are at their highest since June. Those prices are expected to increase in the fall of 2017. This news comes as a surprise to some as there were consistent declines in premiums in previous months.
“Why now?” Many consumers of A356.2 aluminum alloys are left scratching their heads trying to figure out why the sudden increase in premiums. The reason for the increase is in response to discussions about the 2018 material supply, which recently entered deliberation. Producers of aluminum foundry alloys, especially those operating outside of Europe, are pushing for higher rates because of the 6% import tax that is imposed.
This is sending consumers of the alloy into a frenzy as they are trying to lock in deals with suppliers in case the premiums go up again, which according to forecasters is presently happening. They are also seeking alternatives to ensure they get the most value for their investment.
Discover Eccomelt Quality – A Patented Alloy Substitute for A356.2 Ingot, Sow and T-bar
Eccomelt can assist consumers who do not wish to pay more for premiums and are looking to save on their purchases. Alongside Alcan R&D, Eccomelt has developed an economical recycled A356.2 substitute from aluminum wheels. Our product is the material of choice for many consumers because it is chemically pure, environmentally-friendly and economical. Its shredded form has achieved higher melting rates than Ingot, Sow or T-Bar. Environmental testing has also proven the process eliminates all coatings.
Why are Eccomelt products priced cheaper? The Eccomelt356.2 is made from recycled aluminum which is sourced at much lower prices and is more readily available than primary sources. This has allowed us to price our products differently and at much cheaper rates than our primary counterparts. As well, our products have higher melting rates than the ingot, sow or T-Bar counterparts, which helps our customers significantly save on end-user re-melting costs.
For more information about our products, please visit our website’s Product page. Alternatively, feel free to contact us at (888) 356-9557 for more information on our Eccomelt356.2 product. We are committed to helping you achieve a competitive advantage by providing an exclusive product with better profit margins and that is also better for the environment. We have patents in many parts of the world, including the United States, Canada, Europe, Japan, and Mexico.
Implications of the new EU-Canadian Trade Agreement
As we are a Canadian-operated business, we are bound by the new EU-Canadian Trade Agreement. This trade agreement signals good news for Europeans who wish to purchase the Eccomelt356.2 alloy as the product can be brought into EU turf on a duty-free basis. Previously there was an EU tariff of 3% on all-in-price of aluminum and only 25% of tariff lines on Canadian goods were duty free. Upon full implementation, it is expected that the European Union will eliminate tariffs on 99% of its tariff lines.
About Eccomelt
Eccomelt is a division of House of Metals Co. Ltd., founded in 1953 and has achieved recognition as being one of Canada’s best known aluminum processors. Consequently, in 1999, Alcan Inc. selected House of Metals to be their exclusive distributor of foundry ingot products in Ontario and Western Canada.
