US domestic secondary aluminum scrap prices declined on Wednesday following weakened smelter demand as many began preparing for annual maintenance shutdowns.
The weekly Davis Index for old sheet fell by 2.9¢/lb to 68¢/lb delivered US consumer while old cast was flat from last week at 2.3¢/lb delivered. Secondary MLC settled at 77.5¢/lb delivered, down by 0.8¢/lb. The Davis Index for painted siding (secondary) rose by 0.3/lb to 71.5¢/lb delivered. High-grade turnings declined by 2.8¢/lb to 66.5¢/lb delivered.
The official LME Aluminium cash price settled Wednesday at $2,448/mt ($1.11/lb), up by $26/mt from Jun 2.
Zorba prices slipped by 0.7¢/lb to 62.3¢/lb delivered in a constantly oversupplied market. The index for Twitch fell by 2.3¢/lb to 74¢/lb, impacted heavily by the auto slowdown.
The market continues to trend downward as month-long maintenance shutdowns seem imminent at secondary smelters starting this July. A demand slump following the ongoing semiconductor shortage is another reason for some smelters already halting activity this month. With more scrap being generated at this time of the year, and very few buyers, prices are bound to continue falling through the month as we approach the summer. The market only usually picks up in early August.