Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

US export aluminum prices fell across most grades as the global container shortage continued and the LME market went into backwardation, reflecting a generally cautious sentiment.


The weekly Davis Index for 95/2 Zorba fell by 3.2¢/lb to 69.3¢/lb fas US port while 99/3 Zorba moved down to 70.8¢/lb fas, lower by 2¢/lb. Demand for secondary ingots continued to decline in Asia while buyers adopted a wait and see attitude, a market participant told Davis Index.


The indexes for Taint/Tabor and Tense made up their losses from last week, with Taint/Tabor indexing 0.9¢/lb higher at 67.2¢/lb fas while Tense rose by 1.6¢/lb to 67.6¢/lb fas US port.


The weekly index for 6063 extrusion fell by 8.3¢/lb to 81.9¢/lb fas US port while A356 wheels indexed at 83.8¢/lb fas, short by 0.5¢/lb. The LME Aluminium market backwardation increased slightly on Thursday, with the official cash offer higher than the three-month contract by $1.50/mt.


The three-month LME contract closed Thursday at $2,009/mt, down by $10.50/mt from $2,020.50/mt on Jan 7.


The global container shortage paired with reports of rising COVID-19 infections in China has kept demand for aluminum scrap subdued. While Japan has not resumed buying activity yet, its future demand is likely to drop by 40-50pc, according to some market participants.

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