US buying spreads for mill-grade scrap widened on Tuesday after mills filled their volumes for the month amid rising LME Aluminium prices and premiums.
Deals for mill-grade scrap are now being heard for late April or May deliveries with sellers readily offering material at current prices. On the other hand, extrusion scrap supply remains limited with spreads for this material tightening over the week amid increasing activity in the construction industry.
The weekly Davis Index spread for 1100 & 3003 clips widened by 3.3¢/lb to 16.6¢/lb under the Midwest transaction price and the outright pricing for the grade fell by 1.8¢/lb to $1.047/lb delivered US consumer.
Mill-grade MLC’s spread widened by 0.3¢/lb to 37.6¢/lb under Midwest while transaction prices for the grade increased by 1.2¢/lb to 83.7¢/lb delivered.
The weekly spread for 6063 extrusion new bare tightened by 0.2¢/lb to 7.6¢/lb under Midwest, while its transaction price increased by 1.7¢/lb to $1.137/lb during the week.
The official LME Aluminium cash price settled Tuesday at $2,220.50/mt ($1.01/lb), up by $15/mt from Mar 23.