US secondary aluminum alloys prices increased marginally this week as diecasters kept their sales at elevated levels amid firm demand. However, the uptrend in prices has slowed compared to prior weeks.
The weekly Davis Index for A380.1 increased by 0.3¢/lb to $1.064/lb delivered US consumer.
The index for A360 as well, rose by 0.2¢/lb to $1.109/lb delivered. A413.1 saw a rise of 0.9¢/lb to $1.123/lb while 319.1 moved up to $1.09/lb delivered US consumer, better by 0.3¢/lb.
A market participant was heard to have offered B390 at $1.20/lb delivered, up by almost 5¢/lb over last week due to a surge in silicon prices, which make up a large part of the alloy, though no deals were confirmed or reported at this price.
The three-month LME contract closed Friday at $1,976/mt, falling by $22/mt from $1,998.50/mt on Jan 15.
Despite the semi-conductor shortage impacting auto manufacturers, large-scale diecasters continue to produce secondary alloys to meet backlog orders from the sector. Market participants believe that if the global shortage persists, the market will first be affected in Mexico before impacting the US supply chains.