Prices for US secondary aluminum smelter scrap changed this week depending on inventory levels, scrap availability, and offers from different scrap companies for different grades.
The weekly Davis Indexes for all the aluminum shredder grades delivered US consumers were weaker on Wednesday, with Twitch and Zorba giving the most ground, at 0.8¢/lb, each. Twitch moved down to 45.3¢/lb and Zorba declined to 38.5¢/lb.
Tweak settled at 40¢/lb, down by 0.1¢/lb, delivered US consumer. Pricing was relatively stable for these grades, but volumes played a more significant role in the index this week, accounting for the declines.
The index for Old Cast decreased by 0.1¢/lb to 38.3¢/lb delivered US smelters on Wednesday, and the index for Old Sheet fell by 0.2¢/lb to 38.7¢/lb delivered US consumer.
The Davis Index for high-grade turnings and mixed turnings increased by 0.2¢/lb to 33.2¢/lb delivered US consumer and 30.4¢/lb delivered, respectively.
The three-month official LME Aluminum contract closed at $1,726.50/mt, better by $40/mt from $1,686.50/mt on July 22.
Scrap flows improved over the past couple of weeks, according to market participants, but they were not sufficient to keep pricing from moving up before they leveled off this week.
Some aluminum scrap bound for the export market could be left searching for a home with China virtually out of the market because of their new restrictions on importing waste and the lack of understanding surrounding the classifications set to go in effect September 1 and shipping companies choosing not to service Chinese ports until further notice.
Pricing for scrap into US aluminum smelters could also soften as demand in India remains weaker than even the most recent Chinese demand levels despite a recent uptick in prices and activity in the country as it comes out of a COVID-19 related lockdown.