Scrap restocking among smelters saw pricing among most US secondary aluminum scrap grades climb by a cent or more this week.
The weekly Davis Index for old sheet rose by a penny to settle at 68.8¢/lb delivered US consumer while old cast jumped by 1.7¢/lb to 68.5¢/lb delivered. However, secondary MLC prices inched closer to mill-grade MLC with the index for the former increasing by 1.3¢/lb to 77¢/lb delivered, while deals were heard at 81¢/lb at the top-end. For reference, the Davis Index for mill-grade MLC settled at 84.3¢/lb delivered.
Secondary painted siding was flat at 70.5¢/lb delivered for the second successive week while the index for high-grade turnings rose by 1.7¢/lb to 67.7¢/lb delivered.
Twitch climbed by 1.2¢/lb to 76.5¢/lb delivered as smelter demand strengthened and the Davis Index for domestic Zorba 95/2 settled at 65.5¢/lb, flat from last week.
Smelters have begun buying in larger quantities as they begin restocking for the winter months. Scrap availability varies depending on region, with some in the Midwest reporting oversupply, while in western and southern US, collection rates have decreased considerably. Still, the export market continues to pull material away since it is paying at least 4-5¢/lb above domestic levels.