The weekly Davis Index premiums for P1020 and 6063 billet ticked higher over the past week amid a bustling market.
The weekly Davis Index P1020 premium rose by 0.7¢/lb to 16.8¢/lb above the official LME cash settlement. Most deals were made in the mid-to-high 16’s while some offers were even heard as high as 17.5¢/lb, though no deals were reported at this price. Some mill buyers have begun ordering more than their current need, fearing delayed or missed shipments due to erratic freight schedules.
Market participants expect the premiums to move closer to 18¢/lb toward the summer if current logistics issues continue. Tight scrap availability also plays into a higher premium for prime.
Meanwhile, the 6063 billet premium climbed 0.9¢/lb to 17.3¢/lb above the P1020 premium as supply was tight amid strong demand from the extruded sector. Freight costs also supported a jump in the premium.
The official LME Aluminium cash price settled Monday at $2,152/mt (97.6¢/lb), down by $2/mt from March 1.