Tightening supply of secondary aluminum scrap in the US domestic market saw prices for most grades rise on Wednesday. Demand remains weak, taking away from the upward momentum.
The weekly Davis Index for old sheet trended sideways at 68.3¢/lb delivered US consumer, up by 0.1¢/lb. However, old cast rose by 0.8¢/lb to 68.2¢/lb delivered. Secondary MLC climbed by 2¢/lb to 73.3¢/lb delivered. The Davis Index for painted siding (secondary) inched up by 0.2¢/lb to 70.5¢/lb delivered. Meanwhile, high-grade turnings fell by 0.1¢/lb to 66¢/lb delivered.
The official LME Aluminium cash price settled Wednesday at $2,578/mt ($1.16/lb), up by $3/mt from Aug 4.
The index for Twitch fell by 0.5¢/lb to 75¢/lb delivered while Zorba 95/2 domestic settled at 65.5¢/lb, up by 1.1¢/lb.
Many smelters have witnessed order cancellations for secondary alloys, especially from diecasters, due to subdued automotive demand. Labor and transportation shortages have also led to very few spot deals in the past week. Secondary smelters continue to burn through their pile of inventory built up in the previous quarter because of which, prices may remain in their present range until the winter when collection rates drop and supply tightens further.