US buying spreads for mill and extrusion grade scrap widened in a sluggish market. Rising LME prices and stronger P1020 premium have led to a higher Midwest Transaction price.
The official LME Aluminium cash price settled Tuesday at $2,497.50/mt ($1.133/lb), up by $73/mt from Jul 20.
Spreads for MLC and other segregated scrap like EC wire and 5052 clips strengthened amid a tight supply of the materials though most other grades widened by around 3¢/lb or more over the week. Buyers remain inactive and some scrapyards began to notice a shortage of scrap. Pricing for most mill-grade scrap was in line with terminal price movements, as spot deals diminished, helping some buyers from larger mills find bargains.
The weekly Davis Index spread for 5052 clips widened by 2.7¢/lb to 12.2¢/lb under Midwest while transaction prices for the grade rose by 1.4¢/lb to $1.319/lb delivered.
Meanwhile, the spread for mill-grade MLC widened by 1.3¢/lb to 55.8¢/lb under the Midwest transaction price. Outright prices for MLC stood at 87¢/lb delivered US consumer, up by 2.8¢/lb.
The spread for UBCs narrowed by 1.7/lb to 63.3¢/lb under Midwest. Deal prices settled at 80.8¢/lb delivered, an increase of 2.4¢/lb from last week.