US secondary aluminum smelter scrap prices increased on Wednesday as supply tightened due to a strong export scrap market.
The weekly Davis Index for all the aluminum shredder grades moved up from last week, with Zorba increasing by 2.8¢/lb to 49.3¢/lb delivered US consumer. Tweak climbed by a penny to 50.5¢/lb delivered and Twitch rose by 1.5¢/lb to 56.5¢/lb delivered.
The index for Old Cast moved up by 1.4¢/lb to 48.4¢/lb delivered US consumer on Wednesday, while Old Sheet increased by 2.1¢/lb to 48.2¢/lb delivered. The Davis Index for high-grade turnings increased by 2.2¢/lb to 42.2¢/lb delivered US consumer.
The three-month LME aluminum contract closed at $1,853.50/mt, up by $81/mt from $1,772.50/mt on Oct 7.
China’s buying power is being felt on the global aluminum scrap market, despite its absence, in the form of demand for semi-finished metals. The trend is driving up export scrap prices and applying pressure on domestic smelters to buy volumes at elevated rates.