Weekly spreads for US mill-grade aluminum scrap were unchanged on Tuesday despite a drop in the LME aluminum contract, signaling weakness in demand for aluminum on concerns over the COVID-19’s impact to the US economy.
The Davis Index spread for scrap 5052 solids held at 11.4¢/lb, under the three-month LME aluminum contract on Tuesday, with spot prices for the grade also flat at 67¢/lb, unchanged from last week.
The spread for mill-grade MLC remained unchanged from last week’s index at 26¢/lb and spot prices for the material held at 50.7¢/lb. The index for mill-grade painted siding spread was unchanged at 28.4¢/lb, while spot deals on mill-grade painted siding increased to 50.7¢/lb.
The spread for Litho sheet scrap narrowed to 12.2¢/lb while the outright pricing for the category remained at 65¢/lb on Tuesday. UBCs’ spreads remained at 24.3¢/lb while spot deals rose a penny to 55¢/lb.
According to market participants scrap flows are still weak but concerns over the COVID-19 outbreak could impact demand and sales, keeping scrap prices stagnant for now.
The three-month LME aluminum contract closed down by $20/mt at $1,700/mt down from $1,720/mt on March 3.