The spreads as well as transactional prices for aluminum mill scrap were mixed on Tuesday as the scales of supply and demand seek balance amid tight supply and mill furloughs.
The spread for mill-grade 1100 & 3003 clips widened by 0.02/lb to 9.5¢/lb under the three-month LME aluminum contract on Tuesday while the weekly Davis Index for the grade decreased by 0.04¢/lb to 56.4¢/lb delivered US consumer.
The spread for scrap 6063 widened to 9.5¢/lb under the three-month LME aluminum contract, weaker by 0.04¢/lb, while the index for the grade decreased by 1.3¢/lb to 56.8¢/lb delivered US consumer. The weekly spread for mill-grade MLC also widened to 24.5¢/lb, down slightly by 1¢/lb. The index for mill-grade MLC was lower by 0.03¢/lb at 43.1¢/lb delivered US consumer.
The spread for Litho sheet scrap was wider by 0.06¢/lb at 13.5¢/lb under the LME contract while the Davis Index for the grade increased by 0.06¢/lb to 53.1¢/lb delivered US consumer on Tuesday.
The three-month LME contract closed on Tuesday at $1,498/mt, up by $16/mt from $1,482/mt on May 12.
Aluminum mill scrap pricing became increasingly volatile in the past week as both suppliers and consumers tried to get as much value for the material as they could muster in such an uncertain environment.
Consumers hope the reopening of the economy will spark scrap flows and increase supply, while suppliers plan to position themselves as the conduits of that supply to help recover the lost revenues, they have incurred so far this year.