Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

US aluminum scrap export prices increased on Thursday amid limited availability in the export market and a price rally in the LME Aluminium market. 


The weekly Davis Index for zorba 95/2 fell by 1.7¢/lb to 73¢/lb fas US port as the COVID-19 lockdown in India impacted imports. However, Chinese buyers raised their bids for zorba 99/3, following which, the index for the grade rose by 3¢/lb to 75.5¢/lb fas.


Supply in the export market remained extremely limited this week with most of the material being booked by domestic smelters that are currently paying around 10¢/lb higher for the same scrap. Most Southeast Asian buyers have now withdrawn from the market, knowing that they cannot match domestic prices. Besides, the container shortage has led to delayed shipping times and higher freight costs, which have impacted supply chains. 


The weekly Davis Index for Taint/Tabor increased by 0.5¢/lb to 72¢/lb fas while Tense inched up by 0.2¢/lb to 71.5¢/lb fas. LME sensitive 6063 extrusion prices settled at 99.5¢/lb fas, up by 2.5¢/lb and A356 wheels climbed by 2¢/lb to 89.5¢/lb fas. 


The chip shortage in Japan has kept ADC12 prices at $2,200-2,250/mt cfr Japan, which has kept scrap imports in China and India subdued. 


The official LME cash price settled Thursday at $2,373.50 ($1.076/lb), up by $33/mt from Apr 15.

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