The spreads for US mill-grade aluminum scrap were mixed on Tuesday after LME aluminum closed higher than the previous week, while transactional prices decreased across most grades.
The spread for mill-grade 1100 & 3003 clips widened by 1.3¢/lb to 9.3¢/lb under the three-month LME aluminum contract on Tuesday while the weekly Davis Index for the grade decreased by 2.5¢/lb to 56.8¢/lb delivered US consumer.
The spread for scrap 6063 tightened to 9.1¢/lb under the three-month LME aluminum contract, stronger by 1.1¢/lb, while the index for the grade increased by 1.1¢/lb to 58.1¢/lb delivered US consumer. The weekly spread for mill-grade MLC also widened to 23.5¢/lb, down slightly by 0.03¢/lb. The index for mill-grade MLC, however, remained unchanged at 43.4¢/lb delivered US consumer.
The spread for Litho sheet scrap was wider by 0.06¢/lb at 13.5¢/lb under the LME contract while the Davis Index for the grade decreased by 0.07¢/lb to 52.5¢/lb delivered US consumer on Tuesday.
The three-month LME contract closed on Tuesday at $1,482/mt, up by $2/mt from $1,480/mt on May 5.
Contract spreads have been less relevant this week, with most business concluded on the spot market to fill inventory gaps and incentivize scrap flows. Lower volumes contributed to the movement in the spreads and prices as some of the more prominent market participants are working to hold on to material, hoping for a more robust market in the future.