The Davis Indexes for P1020A and 6063 billets were flat Monday, ahead of Canada’s retaliatory tariffs slated for finalization during a Trade Commissioner Service meeting on September 15.
The Davis Index for P1020A was flat at 15.2¢/lb delivered US under the three-month LME Aluminium contract on Monday, while the 6063 billet premium rose 7.7¢/lb above the P1020A premium and balanced from a week ago.
On both sides on the US-Canadian border, market participants have struggled with the reinstatement of Sec 232 aluminum tariffs, which affect Canada’s primary aluminum supply. They cited the decrease in short-term exports into the US and the additional cost it creates for downstream users in the aluminum production value chain.
Market participants argued that Canada’s retaliation could be more harmful to the US and impact aluminum pricing and the economic recovery in both the short- and long-terms. The three-month LME Aluminium contract closed at $1,787.5/mt on September 11, decreasing by $16mt from $1,803.5/mt on September 7.