US export aluminum scrap prices ticked up over the past week on renewed activity in Southeast Asia where some countries are facing limited domestic scrap supply.
The weekly Davis Index for Taint/Tabor increased by 2.1¢/lb to 72.8¢/lb fas US port while Tense prices rose by 2.2¢/lb to 73.9¢/lb fas. Prices for A356 wheels climbed by 5.2¢/lb to 95.7¢/lb fas amid competition between exporters and mills for scrap. The index for Talk jumped by 12.2¢/lb over the week to $2.245/lb fas.
Importers from South Korea, India, Malaysia, and the UAE are aggressively chasing scrap, and have raised their bids compared to last week in the hope of securing enough volumes to fill the supply gap and meet production schedules. Malaysian buyers, especially are trying to fill their volumes to secure imported scrap before Malaysia’s ban on low-grade recovery scrap comes into effect.
Chinese smelters have raised their ADC12 prices to $2,500/mt as a scrap shortage sets in. Still, buyers remain cautious as they need to ensure that customs will approve their quality. As a result, the ADC business in China is running on a just-in-time basis to keep inventories as thin as possible.
The weekly Davis Index for Zorba 95/2 rose by 1.7¢/lb to 74¢/lb fas US port after Indian buyers raised bids in line with the LME and increased scrap demand. Zorba 99/3 inched up by 0.5¢/lb to 72.5¢/lb fas US port. Rejections at Chinese ports continue to restrict zorba flow into the country.
The official LME Aluminium cash price closed Thursday at $2,470.50/mt ($1.12/lb), up by $83.50/mt from Jun 3.