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

Aluminum mill scrap spreads in the US tightened for most grades as the LME market moved lower this week. An ongoing difference of opinion among domestic aluminum association regarding Section 232 tariffs may also affect prices moving forward. 


The LME Aluminium market fell to its lowest for this year, closing Tuesday at $1,958/mt, down by $67/mt compared with $2,025/mt on Jan 12. Notably, the market was back in contango with the cash offers lower than the three-month pricing. 


The spread for mill grade 1100 & 3003 clips was unchanged at 1.2¢/lb under the three-month LME contract on Tuesday, while the weekly Davis Index for the grade fell by 3¢/lb to 87.6¢/lb delivered US consumer.


The index for 5052 clips fell by 1.1¢/lb to 94.9¢/lb delivered US consumer while the spread for the grade tightened by 1.9¢/lb to 6.1¢/lb above the three-month LME contract. 


The spread for 6063 bare scrap was 1.9¢/lb tighter at 3.9¢/lb above the three-month LME contract, with the grade’s index trended flat at 92.7¢/lb delivered US consumer. The spread for mill-grade MLC narrowed by 2.7¢/lb to 18.3¢/lb under the three-month LME contract while the index for the grade fell by 0.3¢/lb to 70.5¢/lb delivered US consumer. 


The supply of segregated aluminum alloy scrap continues to remain tight. Increased scrap inflows, owing to higher ferrous trading this month, have not led to an increase in the availability of segregated aluminum scrap for sale yet.

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