The US premiums for P1020A and 6063 premiums moved higher over the week as the supply from Canada has grown tighter, nullifying the chance of negotiations.
The weekly Davis Index for P1020A was better by 0.8¢/lb at 13.1¢/lb delivered US consumers under the three-month LME Aluminum contract on Monday. Simultaneously, the 6063 billet premium was higher by 0.2¢/lb at 7.9¢/lb above the P1020A premium.
As many have expected, the aluminum market has reacted to the US quotas, with Canadian firms finding other homes for their primary metal. However, some question the long term benefit of restricting lower cost, high-quality metal from a partner in the USMCA.
The three-month LME aluminum contract closed today at $1,930/mt, up $90.5/mt from its close at $1,839.50mt on Nov 2.