US domestic secondary aluminum scrap prices were rangebound over the past week despite fresh highs in the LME Aluminum market.
The weekly Davis Index for old sheet was unchanged at 74¢/lb delivered US consumer while old cast inched down by 0.3¢/lb to 72.2¢/lb delivered. Secondary MLC settled at 79.7¢/lb delivered, down by 2.8¢/lb as supply was abundant and primary grade spreads widened. The index for high-grade turnings slipped by 0.2¢/lb to 69.3¢/lb delivered.
The official LME Aluminium cash price settled Wednesday at $2,446/mt ($1.109/lb), up by $53.50/mt from Apr 28.
Zorba prices fell by 0.5¢/lb to 62¢/lb delivered as the market remained oversupplied with shredded aluminum scrap. The index for twitch rose by 0.8¢/lb to 79.3¢/lb delivered. Some market participants expect twitch demand to strengthen after Taiwanese semiconductors maker TSMC hinted at improved availability of chips by June-July.
Supply and demand seem to have balanced in the physical market. Scrap flows have stabilized and buyers are no longer faced with supply issues. Large smelters with pent up inventories are still buying at numbers 3-4¢/lb below the current price levels. Freight continues to be a pressing issue in this sector, causing cancellations of deliveries in some extreme cases.