Aluminum scrap prices strengthened in the US this past week amid tight supply and weaker terminal markets.
Supply of primary scrap has been tight due to seasonally lower production in the manufacturing sector. This has coincided with soaring demand for scrap from secondary billet producers as primary billet supply disruptions have led several extruders to idle presses.
The three-month LME contract closed Tuesday at $1,962/mt, down by $56/mt from $2,018/mt on Jan 26.
The spread for mill-grade 1100 & 3033 clips narrowed by 0.2¢/lb to 0.8¢/lb under the three-month LME contract while the weekly transaction price for the grade fell by 2.4¢/lb to 88.1¢/lb delivered US consumer.
The Davis Index for 5052 clips fell by 0.5¢/lb at 97.5¢/lb delivered US consumer while the spread for 5052 increased by 2.1¢/lb to 8.5¢/lb above the three-month LME contract.
The spread for 6063 new bare scrap increased by 2.6¢/lb to 6¢/lb above the three-month LME contract. The transaction price for the grade rose by 0.5¢/lb to 95.5¢/lb delivered US consumer.
The weekly index for mill-grade MLC fell to 73.1¢/lb delivered US consumer, lower by 1.9¢/lb. The spread for the grade tightened by 0.6¢/lb to 15.9¢/lb under the three-month LME contract.