US secondary aluminum alloys prices trended flat on Friday amid news of automotive restarts failing to reach anticipated level of production due to gaps in the supply chain. Parts inventories from Mexico were not sufficient to meet demand at all production facilities causing delays and bringing to light more gaps in the supply chain.
The weekly Davis Index for A380.1 remained at 67¢/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 81¢/lb delivered US consumer and was unchanged at 82.3¢/lb delivered US for A413.1.
The three-month LME aluminum contract closed at $1,579/mt on Friday, up by $42/mt from $1,537/mt on May 29.
Slower-than-expected auto restarts helped secondary aluminum scrap consumers hold off on price increases this past week. Scrap dealers pushed for higher numbers, but with decent inventory levels and no increase in demand for alloys, consumers kept pricing the same, trying to protect what little margins secondary alloy producers have left.