US secondary aluminum alloys prices increased for all grades on Friday after good demand and tight supply for both alloys and scrap saw secondary aluminum smelters pushing pricing higher for both to keep their production volumes.

 

The weekly Davis Index for A380.1 moved up by 3.3¢/lb to $1.027/lb delivered US consumer, while A360.1 increased by 5¢/lb to $1.039/lb delivered. The index for A413.1 ticked up by 5.3¢/lb to $1.04/lb delivered US consumers. A319.1 jumped by 1.5¢/lb to index at $1.026/lb delivered.

 

The three-month LME Aluminium contract closed on Friday at $2,059.50/mt, down by $25/mt from $2,034.50/mt on Dec 11.

 

The secondary alloys market is playing a cat and mouse game with prices on both ends of the supply chain, due to the limited availability of volumes for production. For now, China’s lack of secondary alloys output helps justify the price hikes being asked by smelters for new alloys, but the run could end once China re-enters the market.

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