Spreads for US mill-grade aluminum extruder scrap delivered Midwest tightened over the past week to spur better scrap flows amid subdued exchange pricing.
The Davis Index spread for scrap 5052 solids narrowed to 11.4¢/lb on Tuesday, from last week’s spread of 12.2¢/lb, under the three-month LME aluminum contract, with spot prices for the grade increasing by 1.5¢ to 67¢/lb.
Spreads for mill-grade MLC tightened by 2¢/lb to 26¢/lb, while spot prices for the grade increased by 2¢/lb to 50.7¢/lb. The spread for mill-grade painted siding moved up by 2¢ to 28.4¢/lb and spot deals for the material increased by 1.5¢ to 50.7¢/lb.
The spread for Litho sheet scrap narrowed to 12.2¢/lb with outright pricing for the category increasing by 1.5¢ to 65¢/lb on Tuesday.
Spot deals on UBCs were done at 54¢/lb, up by a one-and-a-half penny, while the spread tightened to 24.3¢/lb.
Inclement weather and weak pricing on the aluminum exchange markets left many scrap aluminum consumers in need of material. Spreads tightened due to pressure on rolling mills and extruders’ competing with secondary smelters for scrap aluminum. However, the influx of secondary scrap purchases seems to have subsided, coupled with better weather in the forecast, making consumers hopeful about improved scrap flows in the near term.
The three-month LME aluminum contract closed up $18/mt at $1722/mt down from a week ago at $1704/mt.