The weekly Davis Index P1020 premium inched up by 0.4¢/lb to 28¢/lb above the LME Aluminium cash settlement due to limited supply.
Smelters are noting a slowdown in imports from the Middle East, which is a large provider of primary aluminum to the US. Lack of export equipment and operators, along with other logistical issues are also inflating prices.
Some producers predict a dip in the premium this fall, while others are skeptical, considering the tight supply at present. Recently, Century Aluminum restored its production capacity to 75pc at Mt Holly in Goose Creek, South Carolina, which is being viewed as a positive sign for domestic production and may influence pricing in the long run.
The Davis Index 6063 billet premium settled at 25¢/lb above P1020 with confirmed sales at this price level. Still, all indications point towards a lower premium since most buyers are not willing to purchase material at these prices. A change will only happen when enough tonnage is available in the spot market.
The official LME Aluminium cash price settled Monday at $2,417.50/mt (1.096¢/lb), up by $13/mt from May 28.