Zorba: US debt fight hits Al, Cu scrap

Global zorba prices slumped on Friday as a protracted US debt ceiling debate weighed on the base metal complex and secondary aluminum alloy prices have yet to find a definitive bottom in Asia.

Argus dropped its US east and west coast export prices for 99/3 zorba by 2pc to November low of 77-79¢/lb fas on Friday, confirming sales of 2pc material between 75-77¢/lb fas US east coast.

Indian import prices for 95/2 zorba fell by 5pc to 77-78¢/lb cif, also their lowest since November.

Chinese import prices for 99/3 zorba stayed at 80-82¢/lb cif, but Argus was not able to confirm any spot sales this week and the country's demand has remained disappointing to exporters who have been waiting in vain on a post-lockdown rebound since the first quarter.

Argus kept its ADC12 alloy price flat at $2,260-2,280/t cif Japan on Thursday but market participants were not confident that there was yet any support to keep it from going lower, as hand-to-mouth buying persisted.

July Comex copper settlements rebounded on Friday after several flat-to-down sessions but were still 9¢/lb lower on the week. London Metal Exchange cash official aluminum was off by almost 3¢/lb on the week.

Domestic zorba prices were steady but under pressure on Friday, as some shredders reported moderating flows of feed following a down May market, but US demand for twitch and aluminum scrap was soft, partially because seasonal factors as summer approached.

Argus kept its assessment little changed at 74-75¢/lb delivered for 95/2 type material.

The daily Argus used beverage can (UBC) price was up by 2pc on Friday at 75-76¢/lb delivered mill, as one mill targeted 60pc of the P1020 Midwest transaction price but others pushed for 59pc and lower amid ample supply.