The prices for aluminum mill scrap delivered US mills were higher as the market activity improved, albeit at a slow pace. Scrap generation has increased, but some dealers prefer holding on to the material in the hope of better pricing instead of offering it up for melting.
The spread for mill-grade 1100 & 3003 clips widened by 1.3¢/lb to 11.7¢/lb under the three-month LME aluminum contract on Tuesday while the weekly Davis Index for the grade increased by 0.8¢/lb to 64.3¢/lb delivered US consumer.
The spread for scrap 6063 was wider at 12.3¢/lb under the three-month LME aluminum contract, while the index for the grade increased by 0.3¢/lb to 63.7¢/lb delivered US consumer. The weekly spread for mill-grade MLC widened to 26.2¢/lb, worse by 0.7¢/lb, while the index for the category rose by 0.4¢/lb to 49.8¢/lb delivered US consumer.
The spread for Litho sheet scrap was wider by 1.9¢/lb at 19.3¢/lb under the three-month LME aluminum contract while the Davis Index for Litho sheet increased by 0.2¢/lb to 56.7¢/lb delivered US consumer on Tuesday.
The official three-month LME aluminum contract closed Tuesday at $1,675/mt up by $45/mt, from $1,630/mt on July 7.
Market sentiment is positive but fragile with COVID-19 cases spreading at a high rate. As a result, concerns over a potential second round of shutdowns is weighing heavily on the minds and actions of market participants.