The spreads for aluminum mill scrap were mixed across all grades. Prices for the material increased over the week for most categories but have begun to level off.
The spread for mill-grade 1100 & 3003 clips tightened by 1.2¢/lb to 9.1¢/lb under the three-month LME aluminum contract on Tuesday while the weekly Davis Index for the grade increased by 2.9¢/lb to 63.4¢/lb delivered US consumer.
The spread for scrap 6063 was tighter at 9.9¢/lb under the three-month LME aluminum contract, while the index for the grade increased by 2.6¢/lb to 62.6¢/lb delivered US consumer. The weekly spread for mill-grade MLC widened to 23.7¢/lb, worse by 0.3¢/lb, while the index for the grade decreased by 0.1¢/lb to 48.8¢/lb delivered US consumer.
The spread for Litho sheet scrap was better by 0.2¢/lb at 16.9¢/lb under the three-month LME aluminum contract while the Davis Index for Litho sheet increased by 0.3¢/lb to 55.6¢/lb delivered US consumer on Tuesday.
Mill inventories continue to drive pricing more so than overall demand. As a result, mills seem to be willing to pay what they need to get the right material for their melt programs. The lack of grade specific inventory has kept price fluctuations and spreads fluid depending on the type of material and each mill’s demand for it, making it difficult to measure the strength of the market.