The weekly Davis Index for A380.1 fell by 0.3¢/lb on Friday to $1.178/lb delivered US consumer after supply and demand reached an equilibrium.
Most suppliers reported a busy trading week though prices remained rangebound as the semiconductor shortage continued to weigh on demand from the auto industry for diecasting alloys as well as A380.1. However, some participants anticipate the situation improving and demand increasing in the near term.
The index for A356.1 rose by 0.5¢/lb to $1.39/lb delivered US consumer. The Davis Index for A413.1 ticked up by the same price to $1.387/lb delivered. A360.1 prices increased by 0.4¢ to $1.377/lb delivered while the weekly index for 319.1 settled at $1.262/lb delivered, up by 0.7¢/lb.
Prices have held firm on upward pressure due to production and transportation limitations. Besides, market supply may be hampered with Continental Aluminum being retooled as a billet producer and Allied’s Chicago plant being shut down after Amazon acquired it. Moreover, a few big smelters are planning shutdowns for maintenance in July. With the NASAAC inventory almost running out, prices look to boom in late Q3.
These factors have also led to sellers demanding premium prices being offered in the market at present, compared to historical data from the past year.
The official LME Aluminium cash price settled Friday at $2,451/mt ($1.11/lb), up by $77/mt from Jun 18.