Prices for US secondary aluminum smelter scrap delivered US consumers were higher for most grades over the week. Supply continues to tighten with some relief in sight for a few grades. The large jump in the ferrous market should entice more scrap into yards. Still, the increase in flows has yet to materialize into any meaningful price reductions for secondary smelter scrap.
The weekly Davis Index for Zorba was higher by 5.2¢/lb at 67¢/lb, while Tweak was better by by 2.3¢/lb at 65.5¢/lb and Twitch jumped to 72.4¢/lb, up by 2.6¢/lb, all recording highs for the year, delivered US consumers.
The shredder grades have significant competition from the export market. With export Zorba breaching the 70¢/lb mark in recent weeks, domestic smelters have to pay higher numbers to procure what they need. The rise is ferrous pricing should help curtail the run in pricing in the near term.
The index for Old Cast was higher by 1.9¢/lb at 60.4¢/lb delivered US smelters on Wednesday, and the index for Old Sheet increased by 2¢/lb to 60.2¢/lb delivered US consumer.
The Davis Index for high-grade turnings increased by 1.1¢/lb to 53.3¢/lb. In comparison, 2000/7000 series turnings moved to 45.6¢/lb, worse by 0.8¢/lb.
The three-month LME aluminum contract closed at $2045.5/mt, up from $2027.5/mt on Dec 9.