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

The US premiums for new aluminum moved higher for P1020A and held unchanged from last week for 6063 billets on Monday.


Tight supply and higher freight costs have put continued pressure on the market and have buyers willing to pay more for prompt units. Spot activity has also picked up over the past week heading into year-end.


The Davis Index for P1020A rose by 0.6¢/lb to 14.4¢/lb delivered US consumers under the three-month LME Aluminum contract on Monday. Simultaneously, the 6063-billet premium was at 8.5¢/lb above the P1020A premium, the same as last week.


The Canadian quotas on P1020A have limited the product’s availability and have helped push premiums higher. With added pressure from higher transport costs due to increased freight utilization because of the pandemic, buyers must incentivize the supply chain to procure the material they need.


The three-month LME Aluminium contract closed at $2,023.50/mt on Monday, down $30.50/mt from its close at $2,054/mt on Dec 14.

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