US domestic secondary aluminum scrap prices declined across the board on Wednesday with a bleak outlook in the summer shutdown month.
The weekly Davis Index for old sheet fell 3.5¢/lb to 66.8¢/lb delivered US consumer while old cast declined 1.5¢/lb to 66.7¢/lb delivered. Secondary MLC settled at 75.7¢/lb delivered, down by 3.8¢/lb. The Davis Index for painted siding (secondary) was flat at 72¢/lb delivered. High-grade turnings dropped a penny to 66¢/lb delivered.
The official LME Aluminium cash price settled Wednesday at $2,509/mt ($1.095/lb), trending flat from Jul 7.
The index for Twitch declined to 73¢/lb delivered, down 3.2¢/lb. Many buyers reported prices around 70-72¢/lb while sellers reported prices closer to 75¢/lb. The Davis Index for Zorba 95/2 domestic settled at 64.5¢/lb, up by 0.5¢/lb amid tightening shredded supply. Offers were heard at 67¢/lb while bids were around 62-63¢/lb. The shredded scrap market seems to be gaining traction as the automotive market bounces back with full force.
Demand was weak over the past week with many sellers unable to make any sales. The summer shutdown has led buyers to stop quoting for scrap at all, while some are still buying while their furnaces are idle. Regionally, there is a 2-3¢/lb gap in aluminum scrap pricing at the moment since no uniform volumes are being traded. Secondary smelters continue to pin labor and freight issues as the main reasons for slow production schedules and reduced capacity.