The weekly Davis Index for A380.1 increased by 0.7¢/lb to $1.118/lb delivered US consumer, driven by strong demand from the automotive and household sector.
Sellers reported a surge in demand from diecasters as pickup truck sales have been strong. Market participants believe General Motors extending its production cuts will not affect its SUV and truck output. Besides, a few lawnmower companies are still shipping backlogged orders.
Exports to Mexico continued this week due to a shortage of the material in the country, its reliance on the US for scrap, and longer lead times. Offers were also heard from China, where prices are much higher than domestic US prices.
The weekly index for A360.1 rose by 0.6¢/lb to $1.183/lb delivered while 319.1 moved up 1.7¢/lb to $1.157/lb delivered. The index for A413.1 jumped by 1.5¢/lb to $1.19/lb delivered US consumer. The Davis Index for 356.1 increased by 1.1¢/lb to settle at $1.175/lb delivered.
Secondary scrap prices moved higher as well, increasing input costs. Freight continues to be an issue, with many trucking companies charging double the normal cost due to a shortage of drivers. Sellers are concerned that this may soon reflect in higher prices for alloys.
The LME Aluminium cash price settled Friday at $2,185/mt (99.1/lb), down $17/mt from Feb 26.