US buying spreads for mill and extrusion grade scrap widened by almost a nickel for some grades after the Midwest Transaction price jumped about 8¢/lb over the week, amid all-time highs for the P1020 premium and LME Aluminium cash.
The official LME Aluminium cash price settled Tuesday at $2,595.50/mt ($1.177/lb), up by $98.50/mt from Jul 27.
Physical spot prices for most grades remained consistent with last week despite the MWTP being at the highest in decades. However, some grades such as 6061 new, bare extrusions and segregated clips, moved in line with the jump. Mills continued buying small quantities on the spot market, while most heard transactions are for winter. Still, with the current price level, most participants remain out of the market due to the wide range of prices being offered by the yards.
The weekly Davis Index spread for 5052 clips inched up by 0.1¢/lb to 12.1¢/lb under Midwest while transaction prices for the grade rose by 8.6¢/lb to $1.405/lb delivered.
Meanwhile, the spread for mill-grade MLC widened by 5.4¢/lb to 62.5¢/lb under the Midwest transaction price. Outright prices for MLC stood at 90.1¢/lb delivered US consumer, up by 3.1¢/lb. The spread for painted siding also weakened by 5.7¢/lb to 65.2¢/lb under Midwest.
A356 wheels defied the LME movement this week. The spread widened by 9¢/lb to 49.9¢/lb under Midwest, with deal prices heard at $1.027/lb delivered, down 0.5¢/lb from last week.