The weekly Davis index premiums for P1020 and 6063 billet remained unchanged over the past week.
Despite warehouse inventories and availability of both grades being tight, market participants believe that the premiums have found their levels for now.
The weekly Davis Index P1020 premium was flat at 15.2¢/lb above the official LME Aluminium cash settlement. Simultaneously, the 6063 billet premium also held at 15¢/lb over the P1020 premium.
The 6063 billet premium is still under upward pressure from supply constraints and is at its highest level in more than two months. Market participants expect it to hold at current levels until the summer, when supply is expected to improve.
The official LME Aluminium cash price settled Monday at $2,025/mt, up by $39.50/mt from $1985.50/mt on Feb 1.