Weekly US buying spreads for mill and extrusion grade scrap were flat to wide over the past week in an oversupplied market.
The official LME Aluminium cash price settled Tuesday at $2,458.50/mt ($1.115/lb), up by $19.5/mt from Jun 8.
Mill grade aluminum scrap is readily available due to higher industrial activity and more prime scrap due to the summer months. However, demand is lukewarm as most mills have enough inventory to not raise prices.
Sellers on the other hand don’t have much choice but to either accept lower prices every week for prompt shipment or take long-term orders at better prices. Lack of space and the issue with oxidation if prime grades are stored for too long has tilted the scales in favor of the former giving mills greater control over scrap pricing for now.
The weekly Davis Index spread for 1100 & 3003 clips tightened by 2.3¢/lb to 14.3¢/lb under Midwest while transaction prices for the grade rose by 3.4¢/lb to $1.254/lb delivered.
Meanwhile, the spread for mill-grade MLC widened by 1.7¢/lb to 50.8¢/lb under the Midwest transaction price. Outright prices for the grade fell to 88.9¢/lb delivered US consumer, down by 0.6¢/lb. The spread for painted siding also widened by 2.2¢/lb to 54.5¢/lb under Midwest.
Spreads for 6063 new bare extrusion scrap strengthened by 0.2¢/lb to 11.1¢/lb under Midwest. Transaction prices settled at $1.286/lb delivered, up by 1.3¢/lb.