Pricing for scrap delivered into US secondary smelters increased for most grades over the week in anticipation of a busy October. Secondary alloy prices have continued to climb making room for better pricing for secondary scrap and helping to keep the material flowing into domestic smelters despite a strong export market.
The weekly Davis Index for all the aluminum shredder grades, except Zorba moved higher on Wednesday. Twitch and Tweak each gained 1¢/lb and 0.3¢/lb, to settle at 49.2¢/lb delivered US consumer and 55¢/lb delivered, respectively. Zorba, however, remained level, moving down by 0.2¢/lb to 46.3¢/lb.
The index for Old Cast increased by 0.2¢/lb to 46.8¢/lb delivered US consumer on Wednesday, while Old Sheet decreased by 0.5¢/lb to 46.8¢/lb delivered. The Davis Index for high-grade turnings increased by 0.4¢/lb to 40.7¢/lb.
The three-month LME aluminum contract closed at $1,770.50/mt, up by $11.50/mt from $1,759/mt on Sept 23.
Prices for US secondary aluminum smelter scrap has continued to benefit from tight supply and high demand as the marker steps into October. Robust orders from the automotive supply chain industry have kept smelters optimistic about sustained demand in the first full month of fall.