Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The US premiums for new aluminum moved higher for P1020A and remained unchanged for 6063 billets over the past week. Tight supply and higher freight costs have kept the market’s pressure on buyers compelling them to pay more for prompt units. Spot activity declined last week due to the Christmas holiday.


The Davis Index for P1020A inched up by 0.1¢/lb to 14.5¢/lb delivered US consumers under the three-month LME Aluminium contract on Monday. Simultaneously, the 6063 billet premium was at 8.5¢/lb above the P1020A premium, the same as last week.


Supply for P1020A has been tight ever since Canada reduced its exports to stay under the US trade commission’s radar. Demand is also playing a role in the equation. January may shape up as a decent month for demand, helped by tight scrap, which could force mills to buy primary aluminum for melting to meet their production schedules.


The three-month LME Aluminium contract closed Dec 24 at $2,025.50/mt, up $2/mt from its close at $2023.5/mt on Dec 21. The LME market was closed on Monday for the Boxing Day holiday in the UK.

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