Prices for US secondary aluminum scrap increased for most grades amid sustained demand from the automotive sector, which led to smelters accepting higher prices.
Freight costs continue to trend higher, with scrap sellers pushing the cost to the smelters who need material at present. Demand, as well as prices, for secondary ingots remains strong.
The weekly Davis Index for Zorba increased by 0.2¢/lb to 68.5¢/lb delivered US consumer. The index for Tweak moved up by 0.8¢/lb to 73¢/lb delivered while Twitch rose by 0.7¢/lb to 79¢/lb.
The Davis Index for Old Cast inched up by 0.2¢/lb to 65¢/lb delivered US consumer while the index for Old Sheet increased by 1.4¢/lb to 66¢/lb delivered. Some market participants expected scrap prices to level off this week due to lower export demand. However, sellers have kept their offers at elevated levels.
The weekly Davis Index for high grade turnings moved up by 2.5¢/lb to 61¢/lb delivered US consumer. On the other hand, the 2000/7000 series turnings settled at 51¢/lb delivered, lower by 4.5¢/lb.
The three-month LME Aluminium contract closed on Wednesday at $1,977/mt, falling from $2,008.50/mt on Jan 13.