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

The Davis Index for P1020A and 6063 billet premiums delivered US Midwest ticked up from last week. 


The weekly Davis Index premium for P1020A increased by two-tenths of a penny to 8.9¢/lb delivered US Midwest, under the three-month LME aluminum contract on Monday, while the index for 6063 billet premiums rose by 0.01¢/lb to 5.9¢/lb delivered US Midwest under the same LME aluminum contract.


The three-month LME aluminum contract closed Monday at $1,607/mt, rising by 16/mt from $1,591/mt on June 22.


Premiums were under pressure in the first half of the year, with US-based market participants citing an abundant supply of primary aluminum imported from Canada as one of the reasons for premiums moving within a narrow range. Moreover, the Canadian import volume has stifled European primary aluminum’s entry into the market.


However, anticipation of the government repealing the 10pc tariff exemption on primary aluminum could result in premiums increasing over the next few weeks, according to some market participants. Nevertheless, others believe rising COVID-19 infections across the US could also impact premium levels in the coming days.

Leave a Reply

Your email address will not be published.