Producers of US midwest secondary aluminum alloys ingots have increased prices on A356.1 and A380.1. The latest offers have grown by 1-2¢/lb, up from last week’s pricing with confirmed deals at those numbers.
The Davis Index for A356.1 secondary aluminum alloy is 87¢/lb, up a penny from last week’s price. A380.1 aluminum alloy increased by 2¢/lb to 66¢/lb, up from 64¢/lb a week ago.
Offers for A360.1 have been as high as 84¢/lb this week, with a majority of the confirmed business done at the Davis Index price of 82¢/lb. The Davis Index for A319.1 was unchanged from last week at 72¢/lb, while the Index for A413.1 was flat at 83¢/lb from last week. B390 was also unchanged at 87¢/lb.
Margins have been squeezed for secondary alloy producers as raw material prices have increased since the start of the year, with an expectation of further increases through Q1 2020. According to market participants, the short supply of scrap globally will force consumers to increase raw material pricing.
Secondary alloy producers have fired a warning shot to customers that pricing for US midwest secondary alloys will increase moving into the end of Q1 and start of Q2 with the price for A380.1 expected to rise by 4¢/lb from this week’s price to 70¢/lb by March 2020.