Prices for US secondary aluminum smelter scrap increased over the past week for most grades on better scrap demand and stronger pricing for secondary alloys.

 

The weekly Davis Index for all the aluminum shredder grades delivered US consumers strengthened on Wednesday, with Twitch climbing by 2¢/lb to 50.5¢/lb delivered US consumer. Zorba moved up by 0.8¢/lb to 43¢/lb delivered, while Tweak inched up by 0.3¢/lb to 44.3¢/lb delivered US consumer.  

 

A suppressed ferrous market and the slowdown of inbound automobiles into auto shredders has kept Zorba supply tight. The trend, however, could reverse in September with ferrous scrap pricing looking to increase by $30-40/gt in the first round of bids.

 

The index for Old Cast increased by 1.6¢/lb to 45¢/lb delivered US consumer on Wednesday, while the index for Old Sheet rose by 2.1¢/lb to 45¢/lb delivered. 

 

The Davis Indexes for high-grade turnings and mixed turnings increased by 0.5¢/lb and 0.1¢/lb to 37.2¢/lb and 33.3¢/lb, respectively.

 

The three-month LME aluminum contract closed at $1,815.50/mt, up by $36.50/mt from $1,779/mt on August 26.

 

News of the A380.1 grade pushing into the 72¢/lb range has emboldened suppliers to quote higher for secondary aluminum scrap. In some cases, suppliers got what they wanted, with low inventory being the tipping point between paying a higher rate or not buying it.

Leave a Reply

Your email address will not be published.