Prices for US secondary aluminum smelter scrap were higher for most grades over the week as the domestic smelters continue to battle the price pressure from the export market.
The prices for aluminum shredder grades diverged this week with Zorba moving down, Tweak remaining unchanged, and Tweak increasing. The weekly Davis Index for Zorba declined by 0.8¢/lb to 48.5¢/lb delivered US consumer, while Tweak was flat at 50.5¢/lb delivered. Twitch prices firmed up by 2.5¢/lb to 59¢/lb delivered on Wednesday.
The index for Old Cast inched up by 0.1¢/lb to 48.5¢/lb delivered US consumer on Wednesday and Old Sheet decreased by 0.7¢/lb to 47.5¢/lb delivered. The Davis Index for high-grade turnings increased by 0.3¢/lb to 42.5¢/lb delivered US consumer.
The three-month LME aluminum contract closed at $1,854.50/mt up by $1/mt from $1,853.50/mt on Oct 14.
The strong export market, coupled with a bullish run on the LME, has brought more scrap into the marketplace. With more offers on the table, US smelters have helped push back on some prices that were causing a split market this week.