US aluminum scrap spreads for mill and extrusion grades tightened over the past week on a weaker LME.
Scrap flows have improved over the past few weeks as manufacturing activity has picked up. Still, the increased supply has failed to send outright prices for scrap lower since demand remains strong.
The weekly Davis Index spread for 1100 & 3003 clips tightened on Tuesday by 3.3¢/lb to 10.6¢/lb under the Midwest transaction price. The outright price for the grade rose by 1.5¢/lb to $1.033/lb delivered US consumer.
Outright prices for 6063 new bare rose by 0.7¢/lb to $1.052/lb delivered while the Davis Index spread for the grade narrowed by 1.4¢ to 8.9¢ under Midwest.
Mixed clips were among the few grades to drop in price as supply has outpaced demand. Mill-grade MLC spreads widened by 1.8¢/lb to 35.4¢/lb under Midwest while outright prices fell by 2.6¢/lb to 78.5¢/lb delivered US consumer.
The official LME cash price settled Tuesday at $2,141/mt (97.1¢/lb), down by $35/mt from Mar 2.