The secondary aluminum industry is operating at reduced levels and is on track to smelt just 3.05 million metric tons of die-cast ingot this year. That would be the lowest annual output since 3.09 million metric tons in 1994—and 19% below the cyclical peak of 3.75 million metric tons in 1999. Demand from die casters has fallen and no upturn is anticipated in the short term. So, if demand from die casters is sliding, why are die-cast aluminum prices still elevated? For example, die-cast alloy 380, 3% zinc, has been selling for around 67¢/lb since the start of the year. And that's a nickel more than the fourth quarter of last year. Suppliers say that's because of higher costs for feedstock with lower metal values. They say the general decline in the secondary aluminum industry has reduced the supply of available dross (skimming and spilling from aluminum melting operations) and has reduced the metal content in the dross.