Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Aluminum mill scrap spreads tightened for most grades over the week after the LME Aluminium market lost ground this week from its peak of $2,062/mt on Dec 12. 


The spreads tightened with some variations in different grades depending on the mills’ inventory positions and who is buying heading into the holiday season and year-end. 


The spread for mill-grade 1100 & 3003 clips was tighter by 2.3¢/lb at 0.3¢/lb under the three-month LME Aluminium contract on Tuesday, while the weekly Davis Index for the grade increased to 90.7¢/lb delivered US consumer. The David Index for 5052 rose to 93.61/lb delivered with the spread narrowing by 1.4¢/lb to 2.6¢/lb, above the three-month LME contract mark.


The spread for scrap 6063 was tighter by 0.5¢/lb at 0.3¢/lb above the three-month LME Aluminium contract, while the index for the grade increased to 91.3¢/lb delivered US consumer on Tuesday. The weekly spread for mill-grade MLC was tighter at 21.7¢/lb, better by 0.9¢/lb, while the index for the category was flat 69.3¢/lb delivered US consumer.


The three-month LME Aluminium contract closed on Tuesday at $2,006.50/mt, down from $2,038/mt on Dec 15, lower by $31.50/mt.


Scrap availability is limited, but some dealers are looking to hold on to their volumes to capture a better price in the near-term. Many market participants are looking for cues from the ferrous market and its significant run in pricing to help generate flows, but with the holidays fast approaching and more stimulus checks, the peddler business is slowing down.

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