US aluminum export prices fas US ports increased by 1-2¢/lb on most grades. However, concerns over China’s new waste restrictions that into effect on September 1 are shifting lanes in the supply chain and stalling pricing.
The weekly Davis Index for 95/2 Zorba fas US ports jumped by 2¢/lb to 40.9¢/lb on the weekly Davis Index while 99/3 Zorba increased by 2¢/lb to 43.8¢/lb.
The indexes for Taint/Tabor and Tense were flat at 42.4¢/lb and 43.6¢/lb, respectively. The two grades were impacted the most by the changes seen in the supply chain. A lack of import quotas and major freight companies ending shipments into China and Hong Kong post-September 1 left some material looking for homes, thus oversupplying the market for the time being.
The Davis Index for aluminum-copper radiators increased by 0.7¢/lb, to $1.312/lb on a strong Comex market, which continues to hover around its peak for the year.
The official three-month LME aluminum contract increased by $37/mt to close Thursday at $1,697.50/mt up from $1,660.50/mt on July 16.
Material bound for China saw interrupted supply lanes and diverted into India or South-east Asia for conversion into products such as ingots that will not fall under the new waste restrictions scrutiny, destabilizing some pricing along the way.