US secondary aluminum alloys prices trended flat to up on Friday as sales activity began to increase. A380.1 made the most significant price move over the week.
The rise in sales is helping to reduce older inventory. This is bringing the market back into balance, priming secondary alloy producers to take on the next challenge of short scrap supply and increasing cost of raw material for melting.
The weekly Davis Index for A380.1 ticked up by 0.8¢/lb to 68¢/lb delivered US consumer on Friday and held at 74¢/lb delivered for 319.1. The index for A360.1 decreased by 0.2¢/lb to 80.8¢/lb delivered US consumer and was unchanged at 82.3¢/lb delivered US for A413.1.
The three-month LME aluminum contract closed at $1,599/mt on Friday, up by $12.50/mt from $1,586.50/mt on Jun 12.
Scrap aluminum is still tight across the US, with slightly better activity driven by states that have progressed further in their reopening efforts. Scrap pricing was outpacing new alloy sales pricing amid various restarts around the country and squeezing alloy producers’ margins even more. Better sales are helping to flip the inventory and enliven one of the harder hit sectors in the metals industry.