The spreads for US mill-grade aluminum scrap were wider on Tuesday as LME aluminum closed higher than the previous week, while transactional prices dropped on lower trading volumes.
The spread for mill-grade 1100 & 3003 clips widened by 0.2¢/lb to 6.5¢/lb under the three-month LME aluminum contract on Tuesday and the weekly Davis Index for the grade decreased by 2.3¢/lb to 59.3¢/lb delivered US consumer.
The spread for scrap 6063 widened to 5.9¢/lb under the three-month LME aluminum contract, down 0.1¢/lb, while the index for the grade was flat at 61.5¢/lb delivered US consumer. The weekly spread for mill-grade MLC widened to 22.8¢/lb, down by 0.2/lb, and the index decreased by 1.2¢/lb to 41.5¢/lb delivered US consumer.
The spread for Litho sheet scrap was wider by 0.1¢/lb at 10.4¢/lb under the LME contract. However, the Davis Index for the grade increased by 0.2¢/lb to 54.4¢/lb delivered US consumer on Tuesday.
The three-month LME contract closed on Tuesday at $1,504/mt, up by $20/mt from $1,484/mt on April 21.
Spreads also widened partly due to lower volumes being traded over the week, as scrap dealers in a better financial position started to hold on to their material in anticipation of the economy opening back up in May.