US aluminum mill scrap prices ticked higher for most grades in tandem with a higher LME market after the holiday break.
LME Aluminium lost ground from its peak for the year of $2,062/mt on Dec 12, dropping to a low $2,000/mt mark at the end of 2020. However, the market rebounded to close just shy of $2,040/mt on Tuesday.
Suppliers playing the wait and see game seem to have made the right decision for now as mills plan to keep spreads tight to help encourage flows.
The spread for mill-grade 1100 & 3003 clips was wider by 1.1¢/lb at 1.4¢/lb under the three-month LME Aluminium contract on Tuesday. At the same time, the weekly Davis Index for the grade increased by 0.4¢/lb to 91¢/lb delivered US consumer.
The Davis Index for 5052 increased to 95.9¢/lb with the spread tighter at 3.5¢/lb, above the three-month LME Aluminium contract mark, better by 0.9¢/lb from a week ago. The tightness in the spread of this grade was driven mostly by purchases in the southern US.
The spread for scrap 6063 narrowed by 0.8¢/lb to 0.01/lb above the three-month LME Aluminium contract, while the index for the grade increased to 92.4¢/lb delivered US consumer, better by 1.2¢/lb. The weekly spread for mill-grade MLC widened by 0.2¢/lb to 21.9¢/lb under the LME Aluminium contract, while the index for the category rose by 1.3¢/lb to 70.5¢/lb delivered US consumer.
The three-month LME Aluminium contract closed on Tuesday at $2,038/mt, up by $34/mt from $2,004/mt on Dec 29.