US secondary aluminum alloys prices inched up this week on improved demand and limited supply evidenced by lowering LME Nasaac warehouse stocks in the past few days.
The weekly Davis Index for A380.1 was better by 0.4¢/lb at $1.068/lb delivered US consumer, while A360.1 moved up by 0.6¢/lb to $1.115/lb delivered. The index for A413.1 settled at $1.125/lb delivered, up by 0.2¢/lb, and 319.1 increased by the same amount to $1.092/lb delivered.
Market participants believe that car production in the US, a large consumer of secondary alloys, will not peak until the full effect of the COVID-19 vaccine is evident. This is expected to create a wave of automotive sales, triggering demand for alloys.
On the supply side, high silicon prices have led to higher input costs. Broadly, prices are expected to continue inching up in February as well, according to market participants.
The three-month LME Aluminium contract closed Friday at $1,987.50/mt, up by $11.50/mt from $1,976/mt on Jan 22.