The weekly Davis Index premiums for aluminum P1020 and 6063 billet moved up on Monday amid supply disruptions.
The Davis Index P1020 premium rose by 0.8¢/lb to 20.6¢/lb above the LME Aluminium cash price. This premium is expected to climb as long as domestic supply in the US is constrained, paired with lower imports from Canada due to the tariffs.
Premiums for 6063 billet climbed by 2.5¢/lb to 24.5¢ above P1020, the highest since 2015 on limited availability and increased demand for the grade. The blockage of a bulk carrier in the Suez Canal, which disrupted some aspects of the North American supply chain last week, was also expected to raise the premium higher. However, the Ever Given was successfully refloated on early Monday morning, resolving any future supply chain issues related to this headwind.
The official LME Aluminum cash price settled Monday at $2,255/mt ($1.02/lb), up by $1.50/mt from Mar 22.