Prices for US secondary aluminum smelter scrap were higher for all grades except for those from the shredder, which leveled off as shredder feed flows into yards picked up. The export market continues to face a container shortage, which has increased offers for Zorba and the like in the domestic market.
The weekly Davis Index for Zorba fell to 68.3¢/lb delivered US consumer, lower by 0.8¢/lb. The index for Tweak was off by 0.8¢/lb at 72.2¢/lb delivered, while Twitch moved to 78.3¢/lb delivered, falling by 0.2¢/lb. Offers for the three grades have picked up and prices are expected to be under pressure as container availability increases.
The index for Old Cast increased by 1.3¢/lb at 64.8¢/lb delivered US consumer on Wednesday, and Old Sheet was up by 1.6¢/lb at 64.6¢/lb delivered.
The weekly Davis Index for high-grade turnings increased by 1.5¢/lb to 58.5¢/lb delivered US consumer. In comparison, 2000/7000 series turnings moved to 55¢/lb delivered, better by 4.5¢/lb. Aluminum turnings have been tight for most of the year, with the aerospace industry struggling due to the pandemic. Manufacturing in this sector is expected to remain subdued through the first quarter of 2021.
The three-month LME Aluminium contract closed at $2,008.50/mt, down from $2,068/mt on Jan 6.