Prices of US secondary aluminum smelter scrap remained mostly unchanged from last week, with only small movements on the Davis Index. Smelters are being careful not to overextend themselves on scrap inventory until there is more robust demand.
The weekly Davis Index for aluminum shredder grades increased marginally on Wednesday, moving up by 0.02¢/lb to 39¢/lb delivered US smelters for Twitch and by less than half a penny for both Tweak and Zorba to 36.3/lb delivered and 32.8¢/lb delivered, respectively.
The index for old cast was flat at 35¢/lb delivered US smelters on Wednesday and decreased by 0.1¢/lb to 36.7¢/lb delivered for old sheet.
The Davis Index for secondary MLC dropped by 0.6¢/lb to 41.3¢/lb delivered US smelter and inched up by 0.7¢/lb to 36.5¢/lb delivered smelters for painted siding.
Smelters’ scrap inventory seems to be sufficient for the current level of demand. Automotive restarts have helped, but gaps in the supply chain have prevented carmakers like General Motors from reaching its three full shifts goals on June 1, as it does not have all the parts needed to allow resumption of more robust production.