The Davis Index for P1020A rebounded slightly as primary aluminum sales left the chaos of the past few weeks behind for more consistent prices and lower activity from sellers.
The Davis Index for P1020A ticked up by 0.7¢/lb to 12.6¢/lb delivered US consumers under the three-month LME Aluminum contract on Monday, while the 6063 billet premium held at 7.2¢/lb above the P1020A premium.
Canada could continue to limit its primary aluminum exports to the US to keep the US-imposed aluminum tariffs at bay. Market participants still question the logic behind the tariffs that were recently imposed and then rescinded by the US, since P1020A commanded a premium in the 8-9¢/lb range even during its low point for the year. That supply of less expensive aluminum was believed to be suitable for the industry, especially those that fall under the umbrella of the USMCA.
The three-month LME aluminum contract closed on Monday at $1,847/mt, up by $74/mt from $1,773/mt on Oct 5.