US secondary aluminum alloys prices increased across all grades on Friday as secondary smelters continued to benefit from better global automotive demand and the absence of Chinese smelters.
The weekly Davis Index for A380.1 moved up by 1.5¢/lb to 79.6¢/lb delivered US consumer, while A360.1 increased by 1.6¢/lb to 89.2¢/lb delivered. The index for A413.1 inched up by 0.9¢/lb to 89.6¢/lb delivered US consumers.
The three-month LME aluminum contract closed on Friday at $1,820/mt, up by $80/mt from $1,740/mt on Oct 2.
Secondary aluminum alloy prices remained strong with support from the LME over the week. Robust sales on the spot market continued to support the increase in the index.
US smelters are concerned about China’s recent release of scrap import quotas that would allow more aluminum into the Asian nation and get some of the dormant Chinese smelter capacity back on-line. On the other hand, as of Oct 9, no primary shipping line has agreed to call into Chinese ports due to the fear of inspection issues and the shipping lines’ assets lying dormant.