Prices for US secondary aluminum scrap declined on Wednesday as the supply glut for some grades continued.
The weekly Davis Index for Zorba fell by 2.2¢/lb to 66.3¢/lb delivered US consumer while Tweak was down a penny at 72¢/lb delivered. The index for Twitch also decreased by 2.3¢/lb to 76.7¢/lb delivered. An abundant supply of shredder scrap during high ferrous trades, paired with lower export demand continues to pull prices down.
The Davis Index for Old Cast stood at 66¢/lb delivered US consumer, better by a cent, though Old Sheet fell by 2.2¢/lb to index at 63.8¢/lb delivered.
The weekly Davis Index for high-grade turnings rose by 0.5¢/lb to 61.5¢/lb delivered and the 2000/7000 series turnings saw a much steeper increase to 57.4¢/lb delivered, up by 6.4¢/lb.
The three-month LME Aluminium contract closed on Wednesday at $2,003.50/mt, up by $26/mt from $1,977/mt on Jan 20.
High freight costs continue to be a concern among market participants and could be responsible for driving prices higher, despite better availability for some grades.