US aluminum export prices were flat or increased, depending on grade, on the news that China will continue to buy scrap using the existing import quota models until the end of this year. Importers are still waiting on the next round of quotas before looking for scrap.
Bids for export aluminum scrap started the week lower, but sellers pushed back with offers equal to or slightly higher than previous sales. Not all were successful, but some did manage to get the same number as before.
Both Zorba grades recovered from last week’s drop pushing higher on the promise of China’s return.
The weekly Davis Index for 95/2 Zorba ticked up by 0.7¢/lb to 36.8¢/lb fas US ports and increased by 0.4¢/lb for 99/3 Zorba to 41¢/lb fas US port on Thursday.
The index for Taint/Tabor increased by 0.3¢/lb to 41.3¢/lb fas US ports and was lower for Tense at 42.5¢/lb fas US port, down by 0.3¢/lb.
The Davis Index for aluminum-copper radiators increased by 4¢/lb, to $1.244/lb on the recent turnaround in the Comex market, better by 6¢/lb, at $2.73/lb at Thursday’s close.
The official three-month LME aluminum contract increased by $58/mt to close Thursday at $1,621.50/mt up from $1,563.5/mt on June 25.
China’s absence from the market softened bids as some market participants were left without many sales options. The market has firmed up after China’s latest announcement, but sellers had to push hard to get the sales numbers they did this week. US domestic scrap consumers are keen to keep an eye on export activity and gauge the level of impact it will inevitably have on the US secondary market.