US secondary aluminum alloys prices continued climbing this week as demand from the automotive sector remained robust despite a chip shortage. Scrap supply also continues to be tight, leading to buyers accepting higher prices.
The weekly Davis Index for A380.1 moved up by 1.7¢/lb to $1.061/lb delivered US consumer.
Meanwhile, the index for A360.1 increased by 2.7¢/lb to $1.107/lb delivered with the index for A413.1 rising by 4¢/lb to $1.114/lb delivered US consumer. A319.1 saw the smallest increase of 0.2¢/lb and settled at $1.087/lb delivered.
The three-month LME Aluminium contract closed on Friday at $1,998.50/mt, up by $18/mt from $1,980.50/mt on Jan 8.
Strong demand has driven alloys pricing this week despite the LME Aluminium market being in backwardation. Prices for secondary alloys, especially for A380.1, are expected to move higher as the LME Nasaac inventories are falling to around 20,000mt.