US export aluminum scrap prices rose on Thursday as demand from Asia strengthened, supported by higher LME Aluminium prices.
The weekly Davis Index for Taint/Tabor increased by 3.5¢/lb to 80¢/lb fas US port while the index for Tense rose by 1.8¢/lb to 78¢/lb fas. The index mill-grade scrap A356 wheels settled at $1.024/lb fas, up 3.3¢/lb. Meanwhile, the weekly index for Talk settled at $2.10/lb fas, up 3¢/lb.
The Davis Index for Zorba 95/2 moved up by 2.1¢/lb to 76.2¢/lb fas US port while Zorba 99/3 climbed by 2.4¢/lb to 77.7¢/lb fas. India, South Korea, and Malaysia continue to aggressively chase US zorba with the highest deals heard in the 80¢/lb range. This is fuelled by competition among both importers as well as US domestic smelters.
The rally in LME Aluminium prices also has a big part to play in the upward momentum for export pricing. The official LME Aluminium cash price closed Thursday at $2,816/mt ($1.277/lb), up $122/mt from Sep 2.
Asian importers are also looking at Twitch, with prices heard as high as 85¢/lb cif Southeast Asia. Importers view this as the time to stock up on inventories, despite issues with logistics and freight costs, before Japan decides to start buying ADC12 in bulk again after the chip shortage eases.