The Davis Index for P1020A and 6063 billet premiums delivered US Midwest were unchanged from last week.
The weekly Davis Index premium for P1020A was flat at 8.9¢/lb delivered US Midwest, under the three-month LME aluminum contract on Monday, while the index for 6063 billet premiums was also unchanged at 5.9¢/lb delivered US Midwest under the same LME aluminum contract.
The three-month LME aluminum contract closed on Monday, $1,626/mt up by $19/mt from $1,607/mt on June 29.
The potential reinstatement of Sec 232 tariffs on Canada by the US feels more like a bluff to market participants. However, some consider the news as a warning shot to Canada and Mexico implying that despite the newly signed US Mexico Canada Agreement, the US would not fall back in enforcing the rules on unfair trade practices outlined in the agreement.
After a promising start in May, sales activity became sluggish compared to pre-pandemic levels, which has also impacted aluminum premiums. Automotive sales, for example almost doubled from April to May, but failed to maintain their growth with sales slipping from 1.13mn units in May to 1.11mn units in June.