US export aluminum scrap prices rose across most grades on Thursday on increased export activity. Exporters now have an incentive to sell at higher prices than domestic suppliers, since most smelters are either shut or not actively buying scrap.
The weekly Davis Index for Taint/Tabor increased by 1.3¢/lb to 73¢/lb fas US port, pushing over Tense as the grade in demand. The index for Tense inched down by 0.7¢/lb to 72¢/lb fas. A356 wheels also climbed by 1.3¢/lb to 97.5¢/lb fas but were held back by weakened demand from the auto sector in Asia. The index for Talk stood at 2.045¢/lb fas, up 1.8¢/lb after the LME and Comex copper rebounded.
India remains a key buyer of imported aluminum scrap while Chinese buyers are slowly returning to the market. Korea and Mexico also remain active importers from the US as their secondary smelters run out of inventory quickly.
The weekly Davis Index for Zorba 95/2 increased by 0.6¢/lb to 68.9¢/lb fas US port while Zorba 99/3 rose by 0.9¢/lb to 68.5¢/lb fas US port. India is now running scrap remelting operations in full swing, wanting to undercut Chinese ADC12 producers, who are running low on inventory. China’s fob prices outpace Japanese buyers by $100/mt due to this issue, which remains persistent due to the newly implemented scrap standards.
The official LME Aluminium cash price closed Thursday at $2,435/mt ($1.104/lb), down $46/mt from Jul 1.