Prices of US secondary aluminum smelter scrap increased against low supply and small increases in demand from those in the automotive supply chains.
The weekly Davis Index for shredder grades increased on Wednesday rising to 36¢/lb delivered US smelters from 35.1¢/lb delivered for tweak, and by 0.9¢/lb to 38.8¢/lb delivered for twitch. The index for zorba moved up by 1.2¢/lb, to 32.7¢/lb delivered.
The Davis Index for old cast ticked up by 0.9¢/lb to 35¢/lb delivered US smelters on Wednesday and increased by 1.1¢/lb to 36.8¢/lb delivered for old sheet.
The index for secondary MLC rose by 1.2¢/lb to 41.9¢/lb delivered US smelter and inched up by 1.3¢/lb to 35.8¢/lb delivered smelters for painted siding.
Hopes of a robust recovery are dwindling as more data on the state of the economy becomes available. With unemployment numbers higher than they have been in 50 years, expectations are that the climb out of the recession will be a slow and tedious process, which could impact the demand and supply of secondary aluminum scrap in the medium-term.