The weekly Davis Index premium for 6063 billet ex-US Midwest rose by 58pc on Monday, amid supply disruptions and a lack of imports.
Consumers have drawn down on domestic billet inventories and a few extruders have been forced to idle presses as the market waits for the current supply squeeze to alleviate.
The Davis Index 6063 billet premium rose by 5.5¢/lb to 15¢/lb above the P1020 premium Monday.
Supply constraints are expected to keep premium elevated until the summer. Offers were heard as high as 20¢/lb though no trades were confirmed above 16¢/lb. Market participants reported premium trades in a range of 13-16¢/lb
Meanwhile, the weekly Davis Index premium for P1020 was unchanged at 15.2¢/lb under LME with some upward momentum building from rising freight costs and tightening prompt supply.
The three-month LME Aluminum contract closed Monday at $1,982.50/mt, down by 23.5¢/mt from $2,006/mt on Jan 26.