US secondary aluminum alloys prices were flat to up but have lost ground when compared to scrap pricing for secondary grades over the week.
The weekly Davis Index for A380.1 moved up by 0.6¢/lb to 90.6¢/lb delivered US consumer, with higher raw material costs driving prices. Meanwhile, A360.1 increased by 0.3¢/lb to 92.7¢/lb delivered. The index for A413.1 ticked down by 0.1¢/lb to 94¢/lb, nearly flat, delivered US consumers. A319.1 ticked up by 0.3¢/lb to index at 94.1¢/lb.
The three-month LME aluminum contract closed on Friday at $1,934.50/mt, up by $30/mt from $1,904/mt on Nov 6.
Tight scrap supply has pushed raw material pricing higher for secondary smelters. Until now, recent increases in finished secondary alloys had outpaced the gains in scrap. The tables have now turned again, with secondary alloy producers noticing pressure on their margins in the near term.