US aluminum mill extruder scrap prices were flat on Tuesday as activity shifted to the spot market, where consumers were in search of raw materials.
The three-month LME official aluminum contract settled at $0.8287/lb, up by 1.36¢/lb from $0.8151/lb last week. Spot prices rose by 1-2¢/lb on the strength of the three-month contract.
The Davis Index spread for A356 scrap wheels was flat at 27¢/lb under the three-month LME on Tuesday, with outright prices settling at 57¢/lb, up by 1¢/lb from last week.
Spreads for mill-grade MLC were flat at 31¢/lb, as were painted siding spreads at 38¢/lb.
The 6063 spread remained unchanged at 10¢/lb from last week, with spot pricing increasing by a penny to settle at 71¢/lb.
UBC’s spread remained unchanged from last week at 26.5¢/lb with transactional pricing at 54-55¢/lb across most of the US.
Market participants expect spreads to tighten over the next couple of weeks, as the market enlivens after the holiday season. If primary aluminum deficits continue, increased demand would substantially impact scrap prices moving forward.