US aluminum export prices fas US ports increased, for most grades, after the announcement of the latest batch of import quotas from China. Market participants on both sides of the buy-sell equation believe that China’s decision to stick with its current scrap import system is beneficial for all parties.
The weekly Davis Index for 95/2 Zorba fas US ports jumped by a penny to 37.8¢/lb on Thursday. In contrast, the index for 99/3 Zorba was flat at 41¢/lb, as material that continued to flow into South-East Asia during China’s short-term absence, was ultimately bound for the Asian nation after an upgrade. However, the grade’s prices are expected to move up once the supply chain normalizes.
The index for Taint/Tabor increased by 0.2¢/lb to 41.5¢/lb fas US ports and was higher for Tense at 42.7¢/lb fas US port, up by 0.2¢/lb.
The Davis Index for aluminum-copper radiators increased by 1.2¢/lb, to $1.256/lb on the strong Comex market, which was better by 9¢/lb, at $2.83/lb at Thursday’s close.
The official three-month LME aluminum contract increased by $65.50/mt to close Thursday at $1,687/mt up from $1,621.50/mt on July 2.
The latest batch of quotas saw aluminum scrap offers climb higher but offers were met with some resistance. Most offers settled on counters from consumers, raising the prices for most grades on the Davis Index, albeit below the levels most scrap dealers were hoping to achieve. An uptick in scrap generation and the volumes that were offered kept prices from reaching the desired levels in the first round of offers from scrap dealers.