US secondary aluminum alloys prices were flat on Friday except for A380.1 and A360.1, which moved up on better demand.
The weekly Davis Index for A380.1 increased by 0.4¢/lb to 71.3¢/lb delivered US consumer on Friday, while A360.1 ticked up by a penny to 82.8¢/lb delivered. A413.1 held at 83¢/lb delivered US consumers.
The three-month LME aluminum contract closed Friday at $1,761.50/mt, down by $14.5/mt from $1,776/mt on August 14.
The Original Equipment Suppliers Association (OESA) Supplier Barometer released on August 20 points to a better sentiment in the automotive market, which could mean good news for aluminum alloys suppliers to the industry. However, the automotive industry expects labor concerns moving forward, which may affect production.
As demand picks up for autos and production, labor hours need to increase at production sites. Concerns over the ability for workers to return to safely are divided among market participants who cited the average age of those, particularly in melting facilities, being older than the average age in the workforce and thus more susceptible to COVID-19 infections.
The knowledge contained in those older minds can be invaluable, and production efficiencies can suffer if those workers cannot return to work. Safe working conditions sometimes require working in a very close position with co-workers, making social distancing impossible, market participants surveyed by OESA said.