Prices for US secondary aluminum smelter scrap increased for all grades on Wednesday. Supply continues to tighten against robust demand for aluminum scrap as buyers try to build inventory before the colder weather and holiday season set in. The rising number of COVID-19 infections are also likely impacting buyer decisions.
The weekly Davis Index for Zorba climbed by 2.3¢/lb to 57.5¢/lb delivered US consumer. Tweak increased by 2¢/lb to 62¢/lb delivered, and Twitch jumped by 1.3¢/lb to 69.1¢/lb delivered, all recording highs for the year.
Some rumors of Twitch hitting the 70¢/lb mark were being heard in the market on Wednesday, though no sales were confirmed at this price by Davis Index at the time of publication. As the sentiment of a sellers’ market strengthens, however, it seems entirely reasonable to achieve this rate in the very near-term.
Factors that could impact this sentiment include quality concerns for smelters as the range of the condition of scrap tends to widen when reaching for more material outside the scope of regular suppliers. The export aluminum market, which continues to outpace the domestic market prices is also increasing pressure on prices in the secondary aluminum scrap market.
The index for Old Cast increased by 1.2¢/lb to 57.3¢/lb delivered US consumer on Wednesday, and Old Sheet rose by 1.8¢/lb to 56.3¢/lb delivered. The Davis Index for high-grade turnings inched up by 0.7¢/lb to 51¢/lb delivered. In comparison, 2000/7000 series turnings moved up by 1.9¢/lb to 46.9¢/lb delivered.
The three-month LME aluminum contract closed at $2,062/mt, up from $1,981.50/mt on Nov 25.