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

The weekly Davis Index P1020 premium inched up by 0.3¢/lb to 22.3¢/lb above LME Aluminum cash price as domestic inventories continued to be drawn down. 

 

Market participants reported that the premium remains on an upward trajectory and will continue moving higher in the coming weeks, owing to increasing demand from the various consumer industries. On the other hand, trucking costs across the US have led some suppliers to switch to rail for managing overheads. 

 

The Davis Index 6063 billet premium, however, was flat at 24.5¢/lb above P1020. Very little billet is being traded on the spot market at the moment due to extremely low inventory which is already subject to contracts, leaving the premium unchanged. Demand remains strong but without enough supply to meet it. 

 

The official LME Aluminium cash price settled Monday at $2,254/mt ($1.02/lb), up by $41.50/mt from a week ago. 

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