US export aluminum scrap prices fell across most grades on Thursday after some Asian countries stepped away from the market and LME Aluminium prices declined.
The weekly Davis Index for Taint/Tabor increased by 1.3¢/lb to 76.5¢/lb fas US port while tense prices fell to 72.3¢/lb fas, down by 0.5¢/lb. A356 wheels dropped by 3.5¢/lb to 88.5¢/lb fas, while the index for Talk fell by 4¢/lb to $2.145/lb in tandem with Comex copper.
The official LME Aluminium cash price closed Thursday at $2,392/mt ($1.098/lb), down by $30/mt from May 13.
In India, the cyclone on the West coast saw ports shutting down for business, adding to the COVID-19 lockdown. Due to this, most buyers were out of the market. However, some are still floating bids for small quantities to ensure a healthy supply of scrap in the near term.
Zorba is being rejected at ports like Guangdong and sent to Hong Kong for refining before it can be approved by customs due to China’s new scrap regulations. With these conditions in mind, South Korean buyers are the most active, pulling import material at lower prices as the market cools.
The weekly Davis Index for zorba 95/2 fell by 0.4¢/lb to 74.7¢/lb fas US port on lack of buying activity from India. Zorba 99/3 fell by 3¢/lb to 73.2¢/lb fas US port. With the decline in both copper and aluminum terminal prices, zorba prices weakened across the board, more than others.
Mexico, which was the largest importer of US aluminum scrap recently, is quiet since secondary smelters are full of inventory. Most buyers expect a lull in imports into the country for the coming weeks. Mill grades like 6063 clean bare and A356 wheels are in high demand from US rolling mills, leaving very little supply for exporters.