US secondary aluminum alloys prices increased across all grades on Friday with secondary smelters continuing to benefit from stronger global automotive demand, especially in the US and India.
The weekly Davis Index for A380.1 increased by 3¢/lb to 82.6¢/lb delivered US consumer, while A360.1 ticked up by 0.8¢/lb to 90¢/lb delivered. The index for A413.1 climbed by 0.9¢/lb to 90.5¢/lb delivered US consumers.
The three-month LME aluminum contract closed on Friday at $1,863.50/mt, up by $43.50/mt from $1,820/mt on Oct 9.
Secondary aluminum alloy prices remained strong due to the rising LME market over the week. Robust sales on the spot market continued to support the increase in the index.
The run-in alloy pricing continues to create room for increases in scrap prices. This trend is leaving little in the way of gains for secondary smelters, who are happy to see pricing moving higher but struggle with replacement costs of raw material. Demand for aluminum scrap is strong globally, forcing US smelters to compete with those in India and Southeast Asia, as well as domestic competition.