The weekly Davis Index for P1020A premium delivered US Midwest continued its downward trend on Monday as automotive customers extended their shutdowns.
The weekly Davis Index premium for P1020A declined to 12¢/lb delivered US Midwest, under the three-month LME aluminum contract on Monday, from 12.5¢/lb on March 30. The premium for 6063 billet remained unchanged at 6.5¢/lb delivered US Midwest under the same LME aluminum contract.
Original equipment manufacturers (OEMs) for the aerospace industry could bring more pressure on aluminum premiums as many OEMs have suspended operations in response to the COVID-19 crisis. On the other hand, the demand for food and beverage cans is growing as more individuals and families stock up on items while under stay-at-home orders from local government agencies throughout the country.