Weekly US secondary aluminum alloys prices were range-bound for most grades except A380.1, which jumped higher by 3.1¢/lb over the week, due to tight diecast supply and better-than-expected recovery in auto demand.
The weekly Davis Index for A380.1 moved up by 3.1¢/lb to 85.7¢/lb delivered US consumer, while A360.1 decreased by 0.3¢/lb to 89.7¢/lb delivered. The index for A413.1 inched down by 0.8¢/lb to 89.7¢/lb delivered US consumers.
The three-month LME aluminum contract closed Friday at $1,842.50/mt, down by $21/mt from $1,863.50/mt on Oct 16.
Secondary aluminum alloy prices remained strong with support from the LME over the week. Despite the drop from last week’s worth, which softened some contract pricing, tight supply at the diecast level has offset the base metal price drop with higher demand, pushing A380.1 to its current level.
While higher alloy pricing is welcome, US producers still face high raw material costs from scrap procurement. Although not a penny-for-penny, higher prices for aluminum alloys are being chased by increased scrap cost.