Prices for US secondary aluminum smelter scrap pushed higher over the past week as market activity continued to increase. Market participants walk a tight line along the supply chain, balancing raw materials prices and volumes, against secondary alloy volumes and sale prices.
The weekly Davis Indexes for all the aluminum shredder grades delivered US consumers was stronger on Wednesday, with Zorba edging Tweak with the largest gain over the past week. Twitch moved up by 0.9¢/lb to 44.9¢/lb delivered US consumer and Zorba increased by 1.2¢/lb to 38.7¢/lb delivered. The index for Tweak increased by a penny to settle at 39.1¢/lb, delivered.
The index for Old Cast inched higher by 1.9¢/lb to 38.3¢/lb delivered US consumer on Wednesday, and the index for Old Sheet increased by 1.4¢/lb to 39.1¢/lb delivered.
The Davis Index for secondary MLC was flat at 41.8¢/lb delivered US consumer and rose by 0.7¢/lb to 38.2¢/lb delivered for painted siding.
The official three-month LME aluminum contract closed at $1,686/mt, better by $35/mt from $1,651/mt on July 8.
The A380.1 price looks to index at or above 70¢/lb this week, breaking through a market perception barrier the secondary alloy industry struggled with before the COVID-19 pandemic, leaving more room for profitable scrap purchases in this tight environment.