The weekly Davis Index for A380.1 increased by 0.7¢/lb to 1.17¢/lb delivered US consumer following fresh highs on LME Aluminum this week. Demand for secondary ingots is strong, but some alloys have been affected by lower diecaster demand.
This week, the semiconductor shortage began to weigh on secondary aluminum alloy prices with grades like A356.1 and 319.1 declining after diecasters cut back on production. That said, higher input costs for raw material including aluminum scrap, copper, and silicon lifted the prices for other alloy grades. Freight and labor availability are also driving costs in this market.
The index for A356.1 fell by 2.2¢/lb to $1.273/lb delivered US consumer while A413.1 rose by 1.3¢/lb to $1.253/lb delivered. A360.1 was up by 2¢/lb at $1.235/lb delivered. The index for 319.1 fell by 0.5¢/lb to $1.24/lb delivered.
The official LME Aluminium cash price settled Friday at $2,445/mt ($1.11/lb), up by $66.5/mt from Apr 23. Some market participants believe this price could possibly reach the 2008 high of above $3,000/mt if conditions prevail.