The weekly US secondary aluminum smelter scrap prices increased for all grades on Wednesday. Robust global demand for aluminum scrap could tighten supply along with other factors such as colder weather, the holiday season, and rising COVID-19 infections in the US. Buyers trying to stay ahead of the supply drop are looking for quick deals to fill their inventory gaps.
The weekly Davis Index for Zorba moved up by 0.4¢/lb to 55.2¢/lb delivered US consumer on Wednesday. Tweak was better by 2.1¢/lb at 60¢/lb delivered and Twitch jumped by 1.9¢/lb to 67.8¢/lb delivered, all recording highs for the year.
Higher quality grades have gained much importance at this time due to the concern from smelters over the broad range of chemistry when reaching for scrap.
The index for Old Cast increased by 1.5¢/lb to 56.1¢/lb delivered US consumer on Wednesday, while Old Sheet inched up by 0.3¢/lb to 54.5¢/lb delivered. The Davis Index for high-grade turnings increased by 0.9¢/lb to 50.3¢/lb. In comparison, the 2000/7000 series turnings moved to 45¢/lb, better by 1.6¢/lb.
The three-month LME Aluminium contract closed at $1,981.5/mt on Wednesday, down from $1,994/mt on Nov 18.
Smelters have found some breathing room for their margins this week, with A380.1 bids approaching the 95¢/lb mark and little resistance from buyers.