US secondary aluminum alloys prices rose by 0.5-1.5¢/lb on Friday.
The weekly Davis Index for A380.1 inched up by 0.7¢/lb to 72¢/lb delivered US consumer on Friday. The index for A360.1 increased by 1.6¢/lb to 84.4¢/lb delivered US consumer, while A413.1 moved up by a penny to 84.4¢/lb delivered.
The three-month LME aluminum contract closed Friday at $1,797.50/mt, up by $36/mt from $1,761.50/mt on August 21.
A trifecta of factors is helping drive secondary alloy pricing upwards. The first factor is better domestic demand from the automotive sector, which has continued to improve and ramp up production as the US economy reopens.
The second, is the strengthening global demand for alloys, partly driven by China’s inability to buy scrap aluminum for melting, forcing the switch to accept the alloys in an ingot form.
The third factor is higher scrap pricing, which has outpaced the rise in secondary alloy prices, helping to justify the upward price pressure for secondary alloys.