US aluminum export prices diverged based on destination and volume amid economic challenges across the globe.
Prices for aluminum scrap exported to Mexico and Korea inched up on demand. They also rose for shipments to Japan, which is hungry for segregated alloys of aluminum. India has yet to return to the market in any meaningful way pricing to the country was flat. China and Southeast Asia could secure lower pricing on aluminum scrap on increasing supply from the US due to its weak domestic secondary aluminum market prices.
The weekly Davis Index for 95/2 Zorba ticked down by a penny from 40.1¢/lb fas US ports to 39.1¢/lb and decreased by 3.4¢/lb for 99/3 Zorba to 41.8¢/lb fas US port on Thursday.
The index for Taint/Tabor decreased by 1.3¢/lb to 40¢/lb fas US ports and was flat for Tense at 41.3¢/lb fas US port.
The index for aluminum-copper radiators increased by 6.5¢/lb, to $1.205/lb on the strength of the copper market, which has jumped 16¢/lb on June 10 from last week, only to lose 6¢/lb at Thursday’s close.
The official three-month LME aluminum contract increased by $45/mt to close Thursday at $1,606/mt from $1,561/mt on June 4.
The market is now awaiting the new classification of scrap metal imports in China that come into effect on July 1. To date, the country has not released any official statement because of which, market participants believe that the changes have been delayed. The last two import quotas for aluminum scrap were significantly lower than the fifth batch, which allocated 190,000mt of aluminum scrap for import into the country. Batches six and seven were less than 2,500mt combined for aluminum scrap.