Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

US secondary aluminum alloys prices inched up for most grades driven by strong demand from the automotive sector amid a supply squeeze. Thus, a drop in the LME market driven by a weak US dollar did not impact prices for secondary alloys.


The weekly Davis Index for A380.1 moved up by 1.3¢/lb to $1.038/lb delivered US consumer, while A360.1 decreased by 0.8¢/lb to $1.032/lb delivered. The index for A413.1 ticked up by 0.3¢/lb to $1.042/lb, delivered US consumers, and A319.1 rose by 0.4¢/lb to index at $1.032/lb. 


The three-month LME Aluminium contract closed on Friday at $1,980.50/mt, down by $51/mt from $2,008.50/mt on Dec 23.


The short weeks due to the Christmas and New Year holidays have reduced the volumes traded over the last two weeks, but the sentiment remains robust for secondary alloys moving into 2021. 


China’s lack of production remains key to secondary alloy prices keeping ahead of aluminum scrap pricing. Secondary alloy producers in the US are therefore looking to take advantage of scrap suppliers unwilling or unable to meet the new scrap specifications issued by the Asian nation, to shore up their pricing.

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