Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The weekly US premiums for P1020A ticked down, while the 6063 billet premium remained unchanged on Monday amid year-end inventory-taking and rising LME prices. 


Market participants see more potential for discounts moving into December with the LME closing above the $2,000/mt-mark for the first time since October 2018. 


The weekly Davis Index for P1020A fell by 0.3¢/lb to 13.1¢/lb delivered US consumers under the three-month LME Aluminium contract on Monday.  At the same time, the 6063-billet premium was flat from last week at 8.5¢/lb delivered above the P1020A premium.


Market participants have now positioned themselves into a wait and see stance as the LME market has breached levels that were not seen since 2018. The higher LME prices could increase sellers’ willingness to discount sales as they try to dispose of their inventories at the end of the year in a bid to generate more activity in the market.


The three-month LME Aluminium contract closed at $2,022.50/mt on Monday, up by $37/mt from its close at $1,985.50/mt on Nov 23.

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