US secondary aluminum scrap prices had a mixed week with obsolete grades weakening while shredded and mill grades strengthened.
Buyers received more offers from yards this week, allowing them to push prices lower. A continued container shortage along with lower demand overseas meant exporters offered more material in the domestic market. These market conditions are expected to continue for at least a few more weeks leading several market participants to believe prices remain under downward pressure this month.
The weekly Davis Index index for old cast settled at 64.3¢/lb delivered US consumer, down by 1.7¢/lb. Old sheet slipped by 0.6¢/lb to 63.2¢/lb delivered.
The weekly Davis Index for high-grade turnings rose by 0.5¢/lb to 62¢/lb delivered US consumer. Mixed 2000/7000 turnings, however, slipped to 57¢/lb delivered, down by 0.4¢/lb.
Aluminum shreds had a mixed week with the weekly Davis Index for zorba 95/2 falling by 5¢/lb to 61.3¢/lb delivered US consumer.
Processed shreds, however, were stronger with Tweak slipping by just 0.5¢/lb to 71.5¢/lb delivered. The index for Twitch, meanwhile, rose by a penny to 77.7¢/lb delivered.
The three-month LME Aluminium contract closed Wednesday at $1,972/mt, down by $31/mt compared with $2,003/mt on Jan 27.