The weekly Davis Index for A380.1 was flat on Friday at $1.21/lb delivered US consumer amid a slowdown in the auto industry’s output.
Tighter scrap flows and continuously increasing prices of minor metals like silicon and manganese raised input costs this week. Besides, many smelters are running thin on sales inventory due to various issues such as labor, the COVID-19 pandemic, and July’s maintenance outages.
The weekly index for A356.1 rose by 2.5¢/lb to $1.47/lb delivered US consumer while A413.1 moved to $1.435/lb delivered, climbing by 1.1¢/lb. Sales for this grade were heard as high as $1.45/lb. The index for A360.1 was unchanged at $1.42/lb delivered while 319.1 rose by 2.3¢/lb to $1.32/lb delivered.
Secondary aluminum alloy producers’ order books remain robust despite the weakness in the auto sector, which is being offset by a flurry of orders from other industries. In fact, producers lament that output is unable to keep up with sales at the current demand levels. Some sellers are marking up prices not only due to the ever-widening gap in supply and demand but also because they may be the only producer stocking a certain alloy. This is especially true for A356.1 and A413.1 grades, which are currently extremely tight and on backorder.
The official LME Aluminium cash price settled Friday at $2,569/mt ($1.187/lb), down $33/mt from Aug 13.