US secondary aluminum alloys prices were rangebound for all grades on Wednesday.
Secondary aluminum smelters have raised prices over the past month on strong demand and limited supply for both alloys and scrap, blowing past the pre-pandemic pricing plateaus that hindered many smelters at the beginning of this year.
The weekly Davis Index for A380.1 moved down by 0.2¢/lb to $1.025/lb delivered US consumer, driven mostly by the fall in LME Aluminium prices, but the drop was on a much smaller magnitude than the $51/mt decline seen on the LME since Dec 18.
The index for A360.1 increased by 0.1¢/lb to $1.034/lb delivered, while A413.1 fell by the same amount to $1.039/lb, delivered US consumers. A319.1 climbed by 0.2¢/lb to index at $1.028/lb delivered.
The three-month LME Aluminium contract closed on Wednesday at $2,008.50/mt, down by $51/mt from $2,059.50/mt on Dec 18. The Davis Index will be closed for the Christmas holiday on Dec 24 and 25.
Pricing for alloys and scrap have skyrocketed as economies around the world have worked to reopen after government-imposed shutdowns to control the spread of COVID-19 in the first half of the year. A380.1, the popular automotive alloy, struggled to break the 70¢/lb mark in early 2020. Today, the grade is priced at $1 and poised to climb higher heading into 2021 against tight scrap supply and good demand.