Prices for US export scrap aluminum fas US port remained mostly unchanged from last week as exchange markets moved lower. The three-month LME aluminum price decreased from 81.78¢/lb last week to 78.74¢/lb on Thursday.
The Davis Index for 99/3 Zorba fas US ports was unchanged at 48¢/lb, the same as last week, despite the drop in the value of its red metal content. The Index for 95/2 Zorba fas US ports was flat at 45¢/lb, unchanged from a week ago.
The next active Comex contract has lost 19¢/lb over the past week but hasn’t impacted Zorba pricing due to the current demand for aluminum scrap globally set against tepid flows.
The Davis Index for Taint/Tabor fas US ports was 44¢/lb, with Tense fas US ports slightly stronger at 45¢/lb. Both grades decreased by a penny lower from last week’s Index.
Bearish conditions have set in for the exchange markets as the LME and Comex markets moved lower every day over the past week.
However, demand for aluminum scrap is strong as consumers have left themselves exposed to inventory positions, needing more material than previously forecasted and propping up the current scrap prices against weak exchange markets.
Logistic concerns could also play a role in pricing moving forward as the Chinese government has issued mandates to keep businesses, including some transportation and logistics companies, closed until at least February 2, but more than likely until February 9. Logistics companies are setting up Business Continuity Planning (BCP) contingencies to update customers on more changes in the pipeline.