Explosion at Kaiser Aluminum to affect production
On September 24, Kaiser Aluminum's plant in Sherman, Texas, exploded due to equipment damage. The company expected the accident to reduce the production of alloy aluminum extrusions produced using scrap as the production will be disrupted, while the exact extent is unknown.
If the production cut continues for an extended period, the regional aluminum scrap prices are expected to face pressure. Due to falling aluminum prices, lower premiums, and insufficient spot demand, aluminum scrap prices have been already on a downward trend.
