Explosion at Kaiser Aluminum plant will affect US production

On September 24, an explosion occurred at the Kaiser Aluminum plant in Sherman, Texas due to equipment damage. The company expected the accident to reduce the production of scrap-produced aluminum alloy profiles as production would be halted, although the exact scale is not known.

If production cuts continue for an extended period, regional aluminum scrap prices are expected to come under pressure. Due to falling aluminum prices, lower premiums and insufficient spot demand, aluminum scrap prices are already on a downward trend.