The weekly Davis Index premiums for P1020 and 6063 billet rose over the past week, driven by strong demand.
Robust demand for primary aluminum has been met with limited availability and lower imports due to the Section 232 tariffs. Some smelters are also having to purchase more primary metal as scrap supply is tight.
The weekly Davis Index P1020 premium rose by 0.6¢/lb to 15.8¢/lb above the official LME Aluminium cash settlement. The 6063 billet premium index moved up by a penny to settle at 16¢/lb above the P1020 premium.
Warehouse inventories of 6063 billet continue to dwindle while extrusion demand is still strong. Both the premiums are also supported by increased freight costs during the winter season.
The official LME Aluminium cash price settled Monday at $2,153.50 (97.6¢/lb), up by $74/mt from $2,079/mt on Feb 15.