The prices for aluminum mill scrap delivered US mills were 1-4¢/lb higher over the week with spreads either tightening or widening depending on grade as inventory needs, better scrap flows, and delivery promptness weighed on suppliers and consumers.
The spread for mill-grade 1100 & 3003 clips narrowed by 3.7¢/lb to 9¢/lb under the three-month LME aluminum contract on Tuesday while the weekly Davis Index for the grade increased by 3¢/lb to 72¢/lb delivered US consumer.
The spread for scrap 6063 was better at 9.2¢/lb under the three-month LME aluminum contract, while the index for the grade increased by 3.1¢/lb to 71.8/lb delivered US consumer. The weekly spread for mill-grade MLC was better at 27.7¢/lb, while the index for the category rose by 1.9¢/lb to 53.3¢/lb delivered US consumer.
The index for mill grade painted siding moved up by 1.6¢/lb to 50.9¢/lb, while the spread was slightly wider by 0.1¢/lb, at 30¢/lb under the three-month LME contract. Litho sheet saw its spread tighten by 0.9¢/lb to 15.4¢/lb while the Davis Index for the grade increased by 1.3¢/lb to 65.6¢/lb.
Extruders were willing to reach for EC wire this week to fill higher-quality aluminum units against a higher US P1020A premium. As a result, the Davis Index for EC Wire jumped 4.6¢/lb higher to 78.4¢/lb delivered.
The three-month LME contract closed on Tuesday at $1,786/mt up from $1,748.50/mt on August 4.
Market participants expected spreads to widen with the LME pushing higher. However, dealers are willing to hold on to material, with better scrap flows into scrap yards, hoping its value will increase in the near term. Mills will offer higher pricing in these cases, but the better price is justified by prompt shipment or inventory shortages at the mill.