US secondary aluminum smelter prices leveled off as smelters filled inventory gaps and the three-month LME aluminum contract reversed its downward trend on Wednesday.
The weekly Davis Index for 2000/7000 solids delivered US remained unchanged at 42.5¢/lb and old sheet held at 41.7¢/lb. The index for old cast was flat at 40.6¢/lb.
The Davis Index for secondary MLC prices settled at 44.8¢/lb, the same as last week and remained the same for Tweak, Twitch, and Zorba at 43.5¢/lb, 44¢/lb, and 45¢/lb, respectively.
The three-month LME aluminum contract closed at $1,723.5/mt on Wednesday up by $21.50/mt from $1,702/mt on Feb 26.
With inventory gaps filled, secondary smelters were less aggressive over the past week, but aluminum scrap is still tight coming out of the winter months. Pricing is expected to remain at current levels with an upward pressure towards the end of Q1 2020 as decent demand for finished goods returns to the market.