Weak demand in the secondary aluminum scrap market saw prices inch down despite tightening supply this week. Most secondary smelters are in buying long for now.
The weekly Davis Index for old sheet trended fell 0.5¢/lb to 67.8¢/lb delivered US consumer while old cast declined 1.4¢/lb to 66.8¢/lb delivered. Still, secondary MLC rose 2.4¢/lb to 75.7¢/lb delivered. The Davis Index for painted siding (secondary) was flat at 70.5¢/lb delivered. High-grade turnings were also flat at 66¢/lb delivered.
The index for Twitch rose 0.3¢/lb to 75.3¢/lb delivered. The Davis Index for domestic Zorba 95/2 settled at 65.5¢/lb, flat from last week.
Some smelters heard of better demand probabilities next month, if the chip shortage eases out a little. However, scrap inventory at the smelters is good for the next two months. We continue to see buyers purchasing loads for the winter months to mitigate any price risks. Labor continues to limit production at secondary smelters, which is well under market demand. Spot deals for scrap still remain scarce and prices are being made by buyers in the scenario.