US export aluminum scrap prices moved down on Thursday amid a week-long holiday in Japan that weakened demand for ADC12.
The weekly Davis Index for Taint/Tabor fell by 1.7¢/lb to 75¢/lb fas US port while Tense declined by 4.5¢/lb to 72.7¢/lb fas. However, prices for mill-grade scrap like 6063 bare extrusion and A356 wheels remained unchanged at $1.04/lb fas and $1.01/lb fas, respectively, due to tight domestic supply.
Meanwhile, the weekly index for Talk settled at 2.168¢/lb fas, up 4.3¢/lb from last week. The Davis Index for Zorba 95/2 inched up by 0.2¢/lb to 72.5¢/lb fas US port while Zorba 99/3 slipped by 0.2¢/lb to 72¢/lb fas. Demand for Zorba in Malaysia and India remained strong, with firm bids heard at above 73¢/lb cfr in both countries.
The export market continues to benefit from inactive domestic trading and oversupplied scrap. Importers are willing to pay a premium though freight rates remain high since most countries are buying in bulk. Shipments to China have faded with the strict customs regulations and rejections at the ports. Mexico has moved to buying secondary alloys rather than buying scrap in bulk, giving considerable drive to domestic secondary alloy sellers to find business across the border.
The official LME Aluminium cash price closed Thursday at $2,602/mt ($1.18/lb), up $19/mt from Aug 5.