The weekly Davis Index for A380.1 ticked up by 0.6¢/lb to 69.3¢/lb delivered US consumer on Thursday and rose by 0.6¢/lb to 74.4¢/lb delivered for 319.1 as sales activity began to increase. The A380.1 alloy continues to push higher with confirmed sales at the 70¢/lb mark, a milestone that several smelters struggled to achieve before the pandemic due to oversupply of the material.
The index for A360.1 increased by 0.08¢/lb at 81.6¢/lb delivered US consumer and A413.1 stayed in line with the rest of the alloys moving higher by 0.4¢/lb to 82.7¢/lb delivered US consumers.
The three-month LME aluminum contract closed Friday at $1,669/mt, up by $55/mt from $1,614/mt on July 3. The LME market has increased by more than $200/mt since its low point for the year at $1,460/mt. However, it is still $121/mt lower than its peak of $1,820/mt in early January.
The secondary aluminum industry still faces significant pressure from excess supply despite the recent jump in sale prices. As pricing continues to push higher and more states continue to open, those numbers are sure to attract more attention, enticing more production and applying pressure on sales numbers.