US export aluminum prices fell by 1-2¢/lb across grades for the third consecutive week on subdued demand from Asia.
The weekly Davis Index for Zorba 95/2 declined by 1.6¢/lb to 65.6¢/lb fas US port. The index for Zorba 99/3 also fell by 2.3¢/lb to 66.2¢/lb fas. Ample supply in both the domestic and export market has seen prices level off. Demand from countries like India, China, and Korea continues to lag. In China, the high inventory of secondary ingots has led to some buyers withdrawing from the Zorba market for now.
Market participants believe that the export aluminum market rose too quickly toward the end of 2020 and that prices are now returning to realistic levels, albeit at a slower than expected pace.
The index for Taint/Tabor fell by 1.3¢/lb to 65.1¢/lb fas while Tense dropped by 2.3¢/lb to index at 66.4¢/lb fas. The only grade to see a minor increase was 6063 extrusion, which rose by 0.2¢/lb to 81¢/lb fas. The index for A356 wheels also declined by 1.4¢/lb to 80.2¢/lb fas US port.
The three-month LME Aluminium contract closed Thursday at $1,978/mt, falling by $16/mt compared with $1,994/mt on Jan 21.