US buying spreads for mill and extrusion grade scrap tightened for multiple items this week after collection rates dropped across the country.
The official LME Aluminium cash price settled Tuesday at $2,579/mt ($1.169/lb), down by $16.50/mt from Aug 3.
Scrap supply has tightened over the past two weeks on lower collection rates. Moreover, fewer end consumers are bringing material out to the yards due to the summer heat. Mill demand remains tepid though prices of some grades such as segregated clips, EC wire, and 6063 bare extrusions have remained firm over the past month.
The weekly Davis Index spread for 1100 & 3003 clips tightened by 0.3¢/lb to 15.6¢/lb under Midwest while transaction prices for the grade fell by 0.7¢/lb to $1.36/lb delivered.
Similarly, the spread for 6063 new, bare scrap narrowed by 0.7¢/lb to 12.4¢/lb under Midwest. Deal prices for this grade were heard at $1.392/lb delivered, down by 0.3¢/lb from last week.
The spread for mill-grade MLC also tightened by 0.7¢/lb to 61.8¢/lb under the Midwest transaction price. Outright prices for MLC stood at 89.8¢/lb delivered US consumer, down by 0.3¢/lb. The spread for painted siding also narrowed by 0.4¢/lb to 64.8¢/lb under Midwest.