Prices for US aluminum mill scrap trended flat to slightly down as worries and uncertainty over the rise of COVID-19 infection grew across the country. Spreads weakened across most grades.
The spread for mill-grade 1100 & 3003 clips weakened by 2¢/lb to 11.1¢/lb under the three-month LME aluminum contract on Tuesday, while the weekly Davis Index for the grade declined to 62.5¢/lb delivered US consumer from 63.4¢/lb delivered.
The spread for scrap 6063 was weaker at 11.1¢/lb under the three-month LME aluminum contract, and the index for the grade decreased by 0.1¢/lb to 62.5¢/lb delivered US consumer. The weekly spread for mill-grade MLC widened to 24.8¢/lb, worse by 1.1¢/lb, while the index for the grade remained unchanged at 48.8¢/lb delivered US consumer.
The spread for Litho sheet scrap widened by 1.7¢/lb to 18.6¢/lb under the three-month LME aluminum contract, while the Davis Index for Litho sheet fell by 0.6¢/lb to 55¢/lb delivered US consumer on Tuesday.
The official three-month LME aluminum contract closed Tuesday at $1,621.50/mt, increasing by $23.50/mt from $1,598/mt on June 23.
Overall demand has been muted, and mill inventories continue driving prices. According to some market participants, mills have attempted picking up more grades, like turnings, over the past week, but apart from that the dearth of grade-specific inventory has mostly kept prices flat and spreads fluid. Uncertainties pertaining to a second round of shutdowns, as COVID-19 cases rise in the US have grown, have also given mills and dealers pause and kept prices at current levels.