The weekly Davis Index for A380.1 rose by 0.5¢/lb on Friday to $1.177/lb delivered US consumer amid rising overhead costs.
Most ingot sellers reported subdued trading in a quiet market. Most diecasters are shying away from spot material, leaving only those smelters who have diversified in business as the semiconductor shortage continues to dampen the auto industry. However, most secondary smelters expect a busy second half of the year, when the chip issue is expected to be resolved.
The index for A356.1 fell a penny to $1.37/lb delivered US consumer. Davis Index prices for A413.1 climbed 4¢/lb to $1.373/lb delivered. A360.1 prices were up by 5¢/lb at $1.353/lb delivered. The index for 319.1 slipped by 0.3¢/lb to $1.255/lb delivered.
US secondary smelters usually target Q3 for all repairs and maintenance. That said, with the current market condition, some smelters are considering an early shutdown to make use of the slump in demand. Meanwhile, others plan to work through the maintenance period by alternating production lines to benefit from a short-supplied market once competition subsides for 3-4 weeks. All of these decisions will have to factor in the semiconductor chips situation and how the automotive industry acts in the coming month.
The official LME Aluminium cash price settled Friday at $2,412/mt ($1.092/lb), up by $7.50/mt from May 28.