The spreads for aluminum mill scrap delivered US mill were mixed over the week. The supply of aluminum scrap is still tight against grade-specific demand, causing a divergence in spreads and pricing.
The spread for mill-grade 1100 & 3003 clips widened by 1¢/lb to 10.5¢/lb under the three-month LME aluminum contract on Tuesday while the weekly Davis Index for the grade increased by 0.05¢/lb to 56.9¢/lb delivered US consumer.
The spread for scrap 6063 widened by 0.05¢/lb to 10¢/lb under the three-month LME aluminum contract, while the index for the grade decreased by 0.7¢/lb to 56.1¢/lb delivered US consumer. The weekly spread for mill-grade MLC narrowed to 23.5¢/lb, up by a penny, while the index for the material inched up by 0.09¢/lb to 44¢/lb delivered US consumer.
The spread for Litho sheet scrap tightened by 1¢/lb at 14.5¢/lb under the three-month LME aluminum contract while the Davis Index for the grade increased by 0.06¢/lb to 53.1¢/lb delivered US consumer on Tuesday.
The three-month LME contract closed on Tuesday at $1,513/mt, up by $15/mt from $1,498/mt on May 19.
Market participants are cautious about moving forward despite a probable uptick in demand. Worries over renewal in increased COVID-19 cases, which could lead to a second round of lockdowns, still weigh on the minds of those nervous about cashflows. Those concerns make navigating a way forward more difficult and could slow down the recovery somewhat.