Prices of US secondary aluminum smelter scrap moved up on tight supply and anticipation of automotive restarts set for May 18.
The weekly Davis Index for shredder grades increased on Wednesday with tweak rising from 33.4¢/lb delivered US smelters, to 34.5¢/lb delivered and twitch increasing by 1.5¢/lb to 36.8¢/lb delivered. The index for zorba moved up as well, by 0.04¢/lb, to 31.3¢/lb delivered.
The Davis Index for 2000/7000 solids was flat at 35¢/lb delivered US smelters on Wednesday and increased for old sheet to 36.3¢/lb delivered, up by 3.9¢/lb. The index for old cast ticked up by 0.04¢/lb to 33.5¢/lb delivered.
The index for secondary MLC rose by 1.5¢/lb to 36.5¢/lb delivered US smelter and remained unchanged for painted siding at 33.8¢/lb delivered.
Smelters are evaluating their own needs and looking to position themselves for the much-needed uptick in business with the restart of automotive production set to begin next week. Market participants believe that the restarts will be more of a trickle than a waterfall, leaving the acceleration of change in the supply chain at a manageable level.