US secondary producers recovered an estimated 231,000 mt of aluminum from scrap in May, a 19% year-on-year decline, US Geological Survey data released Aug. 3 showed.
Aluminum recovery from scrap in May also declined 6% from April.
Secondary metal was recovered from 122,000 mt of new scrap and 109,000 mt of old scrap. Most of the aluminum melted or consumed by secondary producers were sourced from used cans (37,300 mt) and dross and skimmings (32,500 mt), according to USGS tabulated reports.
By specific producer type, secondary smelters produced 127,000 mt of aluminum from scrap in May, down from 140,000 mt in May 2019, and independent mill fabricators recovered 98,000 mt of secondary aluminum, down from 137,000 mt in the same comparison.
USGS data showed that aluminum alloy production at US secondary smelters dropped 20% to 70,900 mt in May from 88,800 mt in the same month last year. Secondary alloys were produced using 56,800 mt of aluminum recovered from scrap, compared with 69,900 mt a year earlier.
Secondary aluminum recovery during January-May totaled 1.3 million mt, down from 1.43 million mt in the same period a year ago, according to USGS data.
Inventories of secondary aluminum in LME-approved warehouses, including off-warrant inventories, in the US decreased to 39,477 mt at the end of May from 40,840 mt at the end of April, USGS said.
Prices for aluminum scrap in May averaged 39.80 cents/lb for used cans (down 30% year on year), 32.35 cents/lb for old sheet (down 28%), 33.80 cents/lb for old cast (down 21.5%) and 29.25 cents/lb for turnings (down 23%).
The Platts US A380 aluminum secondary alloy price was assessed at 66-67.5 cents/lb May 28, up slightly from 66-67 cents/lb May 4, the first assessment of the month.
The Platts monthly A380 price averaged 66.656 cents/lb in May, down from 66.889 cents/lb in April.
