US secondary aluminum alloys prices were flat on Friday except for A380.1, which increased slightly over the week.
The weekly Davis Index for A380.1 went up by 0.1¢/lb to 70.9¢/lb delivered US consumer on Friday. The index for A360.1 was flat at 81.8¢/lb delivered US consumer, while A413.1 held at 83¢/lb delivered US consumers.
The three-month LME aluminum contract closed Friday at $1,776/mt, down by $4/mt from $1,780/mt on August 7.
Automotive demand is better across the globe, with India and Japan becoming active in the marketplace for secondary alloys. Market participants, however, seem divided on whether the uptick in demand seen in those two countries is pent up or sustainable.
In either case, global demand for secondary aluminum alloys has pushed scrap pricing higher for secondary alloy producers in the US. As a result, the margins of US domestic smelters are being squeezed as the rise in scrap prices is outpacing price increases for finished alloys.