Demand for 6061 extrusion in Midwest has scrap traveling across US.
Our intel from the ground confirms that US Extruders in the South are not actively pursuing 6061 grades. As we reported earlier, mills in the South are mainly buying 5052 and 6063 scrap units. This has led to scrapyards in the South and Southwest selling bare 6061 extrusions into the Midwest, where one mill is only interested in bare 6061 extrusions. Midwest Mills are long both bare and painted 6063. The delivered price for bare 6061 extrusions in the Midwest is hovering around 81 cent/lb which equates to 24 cent/lb under MWTP (LME+MWP).
It is worth noting that in late February, some 6061 bare scrap volume was even traveling from the US to as far as India on weak US domestic demand.