The weekly Davis Index for A380.1 inched up by 0.2¢/lb on Friday to $1.193/lb delivered US consumer while offers were heard as high as $1.22/lb. Consumer demand remains strong while production is under pressure.
July continues to be a slow month for production as multiple smelters are offline for repairs and maintenance. However, smelters who are still producing say that demand is firm, with many automakers asking for more alloys. As a result, all smelters are running low on inventory.
The index for A356.1 slipped by 0.2¢/lb to $1.40/lb delivered US consumer with almost no spot deals heard. Prices for A413.1 rose by a cent to $1.40¢/lb delivered. The index for A360.1 was at $1.39/lb delivered, up by 0.1¢/lb from last week. The weekly index for 319.1 moved up by 0.2¢/lb to $1.28/lb delivered.
The summer months historically witness lower prices for secondary alloys as both smelters and automakers shut down for maintenance. However, pent-up demand due to the COVID-19 pandemic has led many factories, to continue running by alternating lines. Taiwan Semiconductor Manufacturing Company (TSMC) says that the industry will tide over the chip crisis this quarter, so demand is expected to surge soon.
The official LME Aluminium cash price settled Friday at $2,493/mt ($1.13/lb), up $23/mt from Jul 9.