Rising prices of the A380.1 grade were the only exception in an otherwise flat market for US secondary aluminum alloys on Friday. Global demand for alloys is helping set a floor for sale prices while keeping margins compressed because of higher input costs.
The weekly Davis Index for A380.1 increased by half a penny to 70.5¢/lb delivered US consumers on Friday. According to market participants, automotive demand is increasing and helping to create some room for better alloy pricing against this alloy’s current supply curve.
The index for A360.1 was flat at 81.5¢/lb delivered US consumer while A413.1 held at 83¢/lb delivered.
The three-month LME aluminum contract closed Friday at $1,780/mt, up by $58/mt from $1,722/mt on July 31.
Bad macroeconomic news over the past two weeks stalled the rebound seen in aluminum alloy pricing though better global demand has set a floor for pricing this week, with Japan actively buying ADC12 from Southeast Asia. Although not the same chemistry at A380.1, the ADC grade helps tip the balance to the demand side of the equation propping up pricing for the time being. Domestic smelters still face margin compression from higher input costs, with secondary aluminum scrap rising again for the third week in a row.