Producers of US secondary aluminum alloys are looking to push pricing higher for the straight second week to regain lost margins due to the higher raw material input cost of aluminum scrap.
The Davis Index for A380.1 increased to 68¢/lb on Friday from 66¢/lb last week as the latest offers increased by 1-2¢/lb this week to balance the increase over the past two days in raw material cost.
No deals were confirmed at the 68¢ level as of Friday morning, though producers are hoping to get as much as 70¢/lb for A380.1.
The Davis Index for A319 also moved up by 2¢/lb from 72¢ to 74¢/lb. while it remained flat at 87¢/lb for A356.1 from last week.
New offers pushed the Index for A360.1 to 84¢/lb, up by 2¢/lb from the previous week, while A413 and B390, both remained unchanged from last week’s index at 83c/lb and 86c/lb, respectively.
The three-month LME aluminum price dropped by $60/mt to close at to $1,725/mt from $1,785/mt last week.
Scrap purchasers for secondary smelters started the week trying to balance out the drop in the exchange markets with the lack of supply in scrap raw materials and decent order books in the US.
Bids for scrap started the week relatively flat but needed to move up 1-2¢/lb by the end of the week to help secure the required material and increase flows into scrap yard across the country.