Aluminum mill scrap prices were rangebound for most grades over the week as the LME’s aluminum market declined from its highest point for the year, earlier last week.
Scrap aluminum mill spreads tightened with some variations in different grades depending on the mills’ inventory positions. Mills’ appointment books for scrap metal deliveries are also tightening moving into the Christmas holiday and year-end.
The spread for mill-grade 1100 & 3003 clips weakened by 0.3¢/lb to 5.3¢/lb under the three-month LME Aluminium contract on Tuesday, while the weekly Davis Index for the grade decreased to 85¢/lb delivered US consumer. The Davis Index for 5052 was flat at 93¢/lb with the spread tightening at 1¢/lb, above the three-month LME Aluminium contract mark.
The spread for scrap 6063 narrowed by 0.4¢/lb to 3.2¢/lb under the three-month LME Aluminium contract, while the index for the grade held at 90¢/lb delivered US consumer. The weekly spread for mill-grade MLC was better by 2.6¢/lb at 23.1¢/lb, while the index for the category rose slightly to 68¢/lb delivered US consumer.
The three-month LME Aluminium contract closed Tuesday at $2,007/mt, down by $45.50/mt from $2,052.50/mt on Dec 1.
Concerns over supply still abound for aluminum scrap. However, the upcoming holiday and year-end shutdowns have bought a little relief to the demand for mills. Mills are hoping that the increase currently seen in the ferrous market for scrap will help generate flows into scrap yards and relieve some of the tightness on the equation’s supply side.