US secondary aluminum smelter scrap prices increased for most grades on Wednesday. Supply in the domestic US markets has recently battled with the export markets and now adds weather to its list of challenges.
The weekly Davis Index for aluminum shredder grades delivered all ticked up this week. Zorba climbed by 0.7¢/lb to 49.2¢/lb delivered US consumer, while Tweak increased by 0.2¢/lb to 50.7¢/lb delivered. Twitch moved up by 1.8¢/lb to 60.8¢/lb delivered, breaking the 60¢/lb barrier for the first time this year.
The index for Old Cast rose by 1.5¢/lb to 50¢/lb delivered US consumer on Wednesday, while Old Sheet increased by 0.7¢/lb to 48.2¢/lb delivered. The Davis Index for high-grade turnings increased by 1.2¢/lb to 43.7¢/lb delivered.
The three-month LME aluminum contract closed at $1,815/mt, down by $39/mt from $1,854.50/mt on Oct 21.
The pullback in LME pricing has softened some grades that compete with aluminum mills, while a dip in temperatures and precipitation have negatively impacted the flows into yards in the Midwest, causing concerns for smelters’ inventories heading into the winter months.