The import tariffs on Canadian aluminum that were levied and then rescinded by the US, are still impacting the P1020A and 6063 premiums.
Although the tariffs were removed a month ago, they were replaced with quotas for aluminum imports from Canada. With the US’ northern neighbor close to exceeding those limits now, aluminum prices have effectively stabilized for the time being.
As a result, the weekly Davis Index for P1020A was marginally lower by 0.1¢/lb at 12.5¢/lb delivered US consumers under the three-month LME Aluminum contract on Monday. At the same time, the 6063 billet premium inched up by 0.3¢/lb to 7.5¢/lb above the P1020A premium.
Freight costs are also propping up the premiums. Trucking outfits are hard-pressed to keep up with the high demand for consumer-packaged-goods (CPG) and have been increasing prices with little pushback from the CPG companies who are enjoying a record-breaking year in sales.
The three-month LME aluminum contract closed at $1,859mt on Monday, up by $12/mt from its close of $1,847/mt on Oct 12.