The spreads for US mill-grade aluminum scrap were flat on Tuesday as LME aluminum closed slightly lower than the previous week.
The spread for mill-grade 1100 & 3003 clips was flat at 6.3¢/lb under the three-month LME aluminum contract on Tuesday. However, the weekly Davis Index for mill-grade 1100 &3003 clips decreased by 1.7¢/lb to 59.3¢/lb delivered US consumer.
The spread for scrap 6063 held at 5.8¢/lb under the three-month LME aluminum contract, while the weekly index declined by 2¢/lb to 61.5¢/lb delivered US consumer. The weekly spread for mill-grade MLC was flat at 22.6¢/lb, while the index decreased by 1.7¢/lb to 42.7¢/lb delivered US consumer.
The spread for Litho sheet scrap was flat at 10.3¢/lb under the LME contract, while the Davis Index for the grade decreased by 1.6¢/lb to 54.2¢/lb delivered US consumer on Tuesday.
The three-month LME contract closed on Tuesday at $1,484/mt, down by $12/mt from $1,496/mt on April 14. The LME aluminum market hit a high for the month at $1,520/mt on April 17, from a low of $1,460/mt 10 days earlier and looks to continue bouncing along the bottom until the economy starts firing on all cylinders.
The market is struggling to get a foothold and news of the US economy slated to open back up has left people with more questions than answers. Market participants are particularly concerned about credit insurance and how insurance companies have responded to bad financial statements that are used when determining credit worthiness. The US economic restart may find it hard to get off the ground if companies decide not to sell material or products without coverage in place.