US domestic secondary aluminum scrap prices fell over the past week as abundant supply pulled prices down in tandem with a declining LME Aluminium market.
The weekly Davis Index for old sheet was unchanged at 73.3¢/lb delivered US consumer while old cast moved down by a penny to 71.7¢/lb delivered. Secondary MLC settled at 80.5¢/lb delivered, down by 9¢/lb on abundant supply and significantly low prices for primary aluminum. The index for painted siding (secondary) declined by 3.5¢/lb to 77.5¢/lb delivered. High-grade turnings fell by 1¢/lb to 68.8¢/lb delivered.
The official LME Aluminium cash price settled Wednesday at $2,402.5/mt ($1.089/lb), down by $71.5/mt from May 12.
Zorba prices rose by 0.5¢/lb to 62.5¢/lb delivered as suppliers raised offers amid lack of exports. The index for twitch fell by 1.3¢/lb to 79¢/lb delivered as automotive demand began to sink.
Scrap flows remained solid over the past week. With the LME Aluminium market losing steam, buyers were able to successfully crack deals at lower bids. Moreover, the rally in the LME was not in sync with physical trading. Thus, with primary scrap grade pricing down, most smelter grades followed suit. Except for the rise in freight costs, market participants expect prices to continue moving lower in the coming weeks.