US secondary aluminum smelter pricing continued its grade-driven pricing structure over the past week, as US secondary smelters increased pricing on specific secondary categories, while others remained flat.
The Davis Index for US secondary aluminum smelter 1-1-3 sows increased by 1.6¢/lb from 41¢/lb to the Davis Index price of 42.6¢/lb. Old sheet increased by an additional penny per pound from last week’s price. Old sheet increased to 41¢/lb, while the Davis Index for old cast remained at 39¢/lb.
The Davis Index for mixed 2000/7000 series solids and secondary MLC prices settled at 40¢/lb and 44¢/lb, respectively, remaining flat from last week’s Index for 2000/7000 solids and increasing by a penny for secondary MLC.
The Davis Index for Tweak, Twitch, and Zorba remained the same as last week’s Index, at 41¢/lb, 42¢/lb, and 43¢/lb, respectively.
Smelters looking to get ahead of any potential supply chain disruptions bought more material than they typically would over the past two weeks, and are now only focusing on those grades with low inventory positions in the near-term. Those inventory position needs are the driving force behind the price increases.
The three-month LME aluminum contract closed up at 78.81¢/lb, up from last week’s price of 77.81¢/lb.