US secondary aluminum alloy prices pushed higher on strong global automotive demand globally. The market is still facing pressures on the raw material side despite the current uptrend in alloy prices, with scrap rates increasing faster than secondary alloys this week.
The weekly Davis Index for A380.1 moved up by 1.2¢/lb to 91.8¢/lb delivered US consumer, while A360.1 increased by 2.1¢/lb to 94.8¢/lb delivered. The index for A413.1 jumped by 2.3¢/lb to 96.2¢/lb, delivered US consumers. A319.1 ticked up by 0.7¢/lb to index at 94.8¢/lb delivered US consumer.
The three-month LME Aluminium contract closed on Friday at $1,995.50/mt, up by $61/mt from $1,934.50/mt on Nov 13.
Tight scrap supply has pushed raw material pricing higher for secondary smelters. The most recent increases in finished secondary alloys have outpaced the scrap pricing gains over the past couple of weeks. On Friday, however, the average price increase in scrap logged a more significant move over alloys increasing by almost 2¢/lb. The secondary smelters market remains optimistic about the near-term future, with such intense demand from the automotive sector, and believes the market will stabilize the pricing gap over time.