US aluminum export prices pushed higher for most grades over the week yet again on strong demand from Asia.
Market participants remain concerned over an anticipated supply tightening due to the colder weather in the northern hemisphere and rising COVID-19 infections, which have driven the market higher against the rising demand for secondary alloys in China and Japan.
The weekly Davis Index for 95/2 Zorba climbed by 1.1¢/lb to 58.5¢/lb fas US port while 99/3 Zorba trended flat at 59.6¢/lb fas.
The Davis Indexes for Taint/Tabor and Tense both jumped this week, with Taint/Tabor indexing higher by 2.5¢/lb at 58¢/lb fas, and Tense moving to 59.9¢/lb fas US ports, better by 3.5¢/lb.
The index for 6063 new bare scrap stepped up by 3.3¢/lb to 87.8¢/lb fas, while A356 wheels rose by 0.8¢/lb to 73.3¢/lb fas US port.
The official three-month LME Aluminium contract increased by $72/mt to $1,994.50/mt on Thursday, from $1,922.50/mt on Nov 12.
Concerns over the availability of aluminum scrap supply have turned the market in the sellers’ favor with very little or no push back on offers for the material. Prices in the export scrap market continue to remain above domestic scrap tags though domestic rates are not too far behind in the race. In fact, some traditional grades like Old Sheet and Old Cast reached record highs for the year this week.