The weekly US premium for new aluminum was unchanged for P1020A and rose for 6063 billets on continued supply constraints.
The LME Aluminium market climbed over the weekend as the new Biden administration took office, counting on policy stimulus to strengthen the industry.
The weekly Davis Index for P1020A premium was flat at 15.2¢/lb delivered US consumer under the three-month LME contract. However, the 6063 billet premium rose by 1¢/lb to 9.5¢/lb delivered above the P1020A premium.
Market participants noted limited supply for both prime and billet but said that the availability of 6063 was tighter compared to P1020A, which has stabilized over the past month.
The three-month LME Aluminium contract closed on Monday at $2,006/mt, rising by $22/mt from $1,984/mt on Jan 18. Notably, the official cash offer exceeded the three-month contract by $5/mt, reflecting a small backwardation in the market.