US secondary aluminum alloy prices climbed on Friday on labor shortages and robust demand.
Foundries are struggling with a shortage of labor, which has also dragged down capacities. Still, demand remained strong in the secondary ingot market even though certain die casters reporting cutbacks due to the semiconductor shortage. On the other hand, General Motors decided to pull back on its production cuts, reflecting market recovery from the chip shortage.
Consumption of secondary aluminum alloys remains high, despite a lack of spot material, with the household and lawn equipment sectors strengthening supplier order books. Demand has outpaced supply over the past week and higher costs related to copper, silicon and other overheads like freight have spurred prices.
The weekly Davis Index for A380.1 rose by 0.4¢/lb to $1.16/lb delivered US consumer while 319.1 prices increased by 2.3¢/lb to $1.22/lb delivered, driven by the high cost of silicon. The index for A360.1 inched up by 0.3¢/lb to $1.218/lb delivered and A413.1 settled at $1.22/lb delivered, up by 0.1¢/lb.
The LME Aluminium cash price settled Friday at $2,308.50/mt ($1.043/lb), up by $96/mt from Apr 9.