US secondary aluminum alloys prices moved up on tight supply and strong demand, with the A380.1 grade breaching the 90¢/lb mark to reach its peak for the year.
The weekly Davis Index for A380.1 climbed by 3.9¢/lb to 90¢/lb delivered US consumer, while A360.1 increased by 2.1¢/lb to 92.4¢/lb delivered. The index for A413.1 ticked up by 3.2¢/lb to 94¢/lb delivered US consumer.
The A319.1 grade took the most significant step, for the second week in a row, with the index for the category rising by 4.2¢/lb to 93.8¢/lb.
The three-month LME Aluminium contract closed on Friday at $1,904/mt, up by $80.50/mt from $1,823.50/mt on Oct 30.
Tight scrap supply has pushed up raw material prices for secondary smelters. Yet, for now, the increases on finished secondary alloys have outpaced the gains in scrap, allowing smelters to raise margins heading into the calendar year-end.