The US secondary aluminum smelter prices showed strength in grade-specific markets this week with smelter prices delivered US Midwest for mixed 2000/7000 series solids, secondary MLC, and painted siding all increasing on Wednesday.
The Davis Index for mixed 2000/7000 series solids and secondary MLC prices both increased by 5¢/lb, to 40¢/lb and 45¢/lb, respectively.
However, many grades held the line at previous week’s prices. The Davis Index for old cast and old sheet remained at 38¢/lb for both grades. The Index for Tweak, Twitch, and Zorba was also flat with Tweak and Twitch in the 41-43¢/lb range, and Zorba holding at 45¢/lb for US secondary smelters.
The three-month LME aluminum contract increased slightly to close Wednesday at $1,809/mt, up from $1,805/mt last week. During the week, the prices on the three-month contract peaked at $1,817/mt on Tuesday.
The movement in secondary smelter prices reflects regional and microeconomic factors, such as weather, supply, and inventories, that are creating a segmented market.
Offers for aluminum shredder grades were plentiful from suppliers, while painted siding and MLC were off by 10pc or more. After the Lunar New Year the demand from China is expected to increase and will, in turn, improve prices for grades that remained flat this week.