Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

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.

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