US aluminum export prices fas US ports fell across some grades and increased for others as buyers and sellers tried to understand the latest shifts in the supply chain.
The weekly Davis Index for 95/2 Zorba fas US ports retracted by 0.2¢/lb to 40.7¢/lb as suppliers looked for a new home to export the material with shipping companies unwilling to service ports in China. However, pricing for Zorba being shipped to India has benefitted the most as activity for the grade has picked up on better demand from the country, which is to reopen its economy in the aftermath of the COVID-19 pandemic.
The Davis Indexes for Taint/Tabor and Tense were split compared to last week, with Taint/Tabor increasing by 0.4¢/lb to 42.8¢/lb and Tense dropping by 1.7¢/lb to 41.9¢/lb.
The index for aluminum-copper radiators decreased by 1.3¢/lb, to $1.299/lb on a weaker, but relatively steady Comex market, which continues to hover just below its peak for 2020.
The official three-month LME aluminum contract increased by $29/mt to close Thursday at $1,726.50/mt up from $1,697.50/mt on July 23.
Market participants expect aluminum export pricing to rebound as soon as more distinct supply lanes are established after the recent shakeup in the market.
Indian consumers have pulled back hoping to regulate the price hikes. However, they will need to fill inventory gaps created by being out of the market for an extended period due to government-imposed shutdowns, which in turn, could help to prop up the market in the near-term.