Prices for US secondary aluminum scrap increased across most grades on Wednesday amid bullish macroeconomic sentiment and an improved outlook on auto sales.
The weekly Davis Index for old cast increased by 0.3¢/lb to 72.7/lb delivered US consumer while old sheet rose by 0.9¢/lb to 72.5¢/lb delivered.
Scrap flows have started improving with buyers reporting more offers than usual. Demand for secondary ingots remained strong, with the auto sector expecting higher sales this year compared to 2020. Market participants expect prices to continue rising and hope for higher consumption if the infrastructure bill is passed by Congress.
The weekly Davis Index for high-grade turnings increased by 0.4¢/lb to 70.5¢/lb delivered while mixed 2000/7000 clips rose by 1.3¢/lb to 64.8¢/lb delivered. Secondary MLC prices climbed 1.1/lb to 76.3¢/lb delivered.
Shredded scrap prices, on the other hand, fell on Wednesday on higher availability. The index for zorba declined by 2¢/lb to 64.5¢/lb delivered US consumer and Tweak fell by 0.7¢/lb to 72¢/lb delivered. Still, auto demand spurred Twitch prices higher by 1.5¢/lb to 81.8¢/lb delivered.
The official LME cash price settled Wednesday at $2,239.50/mt ($1.015/lb), up by $27/mt from Mar 31.