The spreads for some US mill-grade aluminum scrap tightened over the past week, as market participants struggle to balance scrap flows with volatile demand.
The spread for mill-grade MLC tightened by 1.5¢/lb to 22.5¢/lb under the three-month LME aluminum contract on Tuesday. However, the weekly Davis Index for the grade decreased by just under half a cent to 46.6¢/lb delivered US consumer.
The spread for scrap 1100 & 3003 clips narrowed to 7.5¢/lb, from 8.6¢/lb, while the index for the grade decreased to 61.9¢/lb delivered US consumer, from 62.5¢/lb, delivered on March 24.
The weekly Davis Index for mill-grade painted siding increased by 0.4¢/lb to 45.4¢/lb delivered, from 45¢/lb delivered US consumer while the spread for the grade narrowed to 23.9¢/lb.
The spread for Litho sheet scrap tightened by 1.6¢/lb to 10¢/lb, with the index for the grade decreasing to 59.1¢/lb delivered on Tuesday, down slightly from 59.5¢/lb delivered US consumer on March 24.
The spread for UBC scrap narrowed by 2¢/lb to 21.1¢/lb with the Davis Index for the grade holding at 48¢/lb.
The three-month LME aluminum contract closed at $1,524/mt down by $44/mt from $1,568/mt on March 24.