US buying spreads for mill and extrusion grade scrap were tightened for most grades except painted siding and MLC as the LME Aluminium cash price weakened.
The official LME Aluminium cash price settled Tuesday at $2,478/mt ($1.124/lb), down by $51/mt from Jul 6.
Outright scrap prices remained stable in most segments, except segregated clips, which saw a considerable bump in pricing over the last week. With demand from the auto industry improving as well, A356 wheels also saw prices increase over the week. Despite a good availability of scrap, mill buyers buying small loads has lowered their bargaining power and yards are trying to raise prices. Many transactions are being made forward by at least a month or two to ensure consistent scrap flow during the colder months.
The weekly Davis Index spread for 1100 & 3003 clips tightened by 2.6¢/lb to 13.1¢/lb under Midwest while transaction prices for the grade rose by 1.3¢/lb to $1.293/lb delivered.
Meanwhile, the spread for mill-grade MLC widened a penny to 55.4¢/lb under the Midwest transaction price. Outright prices for MLC stood at 87¢/lb delivered US consumer, down by 2.3¢/lb.
The spread for A356 wheels narrowed by 1.7/lb to 40.7¢/lb under Midwest. Transaction prices settled at 1.017/lb delivered, increased by 0.4¢/lb.