US secondary aluminum scrap prices moved within a penny’s range for most grades this week as smelter demand picks up.
The weekly Davis Index for old sheet rose by a penny to 69.8¢/lb delivered US consumer while old cast inched up by 0.3¢/lb to 68.8¢/lb delivered. Secondary MLC corrected from last week’s high by 0.8¢/lb to 76.2¢/lb delivered while painted siding (secondary) remained unchanged at 70.5¢/lb delivered for the third successive week. High-grade turnings fell by 2¢/lb to 65.7¢/lb delivered.
Twitch fell by 0.8¢/lb to 75.7¢/lb delivered as smelters lowered their bids this week, with 72¢/lb being the floor. The Davis Index for domestic Zorba 95/2 settled at 64.7¢/lb delivered, down 0.8¢/lb as well. Buyers reported an oversupplied shredded scrap market once again.
Secondary smelters have now begun buying operations in full swing. That said, a stable supply of scrap in most regions saw prices remain almost unchanged from last week. This market has not been affected at all by the LME rise in the past week. Despite considerable demand and favorable pricing for secondary alloys, most smelters aren’t buying more than they need right now as labor and COVID-19 issues are currently hindering production schedules. Market participants expect the Labor Day weekend to shake up prices a bit cannot judge the direction of the movement.