US aluminum scrap spreads for mill and extrusion grades widened on Tuesday amid a rally in the LME Aluminium market.
The weekly Davis Index spread for 1100 & 3003 clips widened by 1.3¢/lb on Tuesday to 13.3¢/lb under the Midwest transaction price. The transaction price for the grade rose by a penny to $1.065/lb delivered US consumer.
Mill-grade MLC spreads widened by 2.8¢/lb to 37.3¢/lb under the Midwest while the transaction price fell by 0.5¢/lb to 82.5¢/lb delivered.
The spread for 6063 new bare tightened by 0.2¢/lb to 7.8¢/lb under Midwest while its transaction price increased by 1.5¢/lb to $1.12/lb delivered US consumer.
Scrap flows improved over the past week on robust manufacturing activity but supply for some grades remained tight. Still, high freight costs continued to impact pricing and some buyers decided to hold back until the market cools down and transportation is more affordable.
The official LME Aluminium cash price settled Tuesday at $2,205/mt ($1/mt), up by $31/mt from Mar 16.