The weekly Davis Index for A380.1 moved up by 0.7¢/lb on Friday to $1.209/lb delivered US consumer as domestic supply tightened. Deals for prompt delivery material were heard at $1.22/lb at the top-end.
With most secondary smelters just returning from the summer shutdowns, this industry’s inventory levels are quite low and while spot deals are few at the moment, the scarcity of material has forced producers to raise prices.
The index for A356.1 declined by 1.3¢/lb to $1.427/lb delivered US consumer as diecasters’ demand was subdued by the chip shortage that continues to affect the US automotive industry. The index for A413.1 inched up to $1.413/lb delivered, climbing 0.3¢/lb. The index for A360.1 settled at $1.407/lb delivered, up by 0.7¢/lb from last week. Offers for this grade were heard at $1.42/lb. The weekly index for 319.1 fell 0.8¢/lb to $1.292/lb delivered.
Some producers raised their offers due to the rising cost of inputs, such as silicon and magnesium. The strong Midwest transaction price also had a role to play in pricing. Meanwhile, other sellers could not find buyers amid the slowdown in the auto industry. Some diecasters have been heard to cut production due to a lack of new orders. This variation saw a 2-3¢/lb range among selling prices.
The official LME Aluminium cash price settled Friday at $2,618.50/mt ($1.187/lb), down $5.50/mt from Jul 30.