Prices of US secondary aluminum smelter scrap remained mostly unchanged from last week, with only small movements to note.
Trading activity picked up slightly from the previous week. Contractual business is concluding somewhat faster than in previous weeks, while more scrap is being purchased because most, if not all, smelters are back in the market. Scrap sales to smelters have been very grade-specific; consumers are only buying inventories they need to replenish and remain cautious because of uncertain macroeconomic conditions.
The weekly Davis Index for aluminum shredder grades were mixed on Wednesday, with Tweak dropping by a tenth of a penny to 36.1¢/lb del US smelter. Twitch ticked up by six-tenths of a penny to 39.6¢/lb, while Zorba was flat at 32.8¢/lb.
The index for Old Cast was flat at 35¢/lb delivered US smelters on Wednesday, and the index for old sheet decreased by 0.2¢/lb to 36.4¢/lb delivered.
The Davis Index for secondary MLC dropped by 0.1¢/lb to 41.2¢/lb delivered US smelter, but increased by 0.2¢/lb to 36.7¢/lb delivered smelters for painted siding.
As the US emerges from quarantine, the market is sluggish. With such a sharp decline in activity, many believed a fast rebound was imminent, however, recovery is occurring at a snail’s pace. Nevertheless, there was some positive news this week: the economy added back jobs and the PMI consumption index is up, which will help propel the PMI demand index back into positive territory in the coming months.