The US premiums for P1020A and 6063 were flat on tight supply from Canada ahead of what many market participants believe to be a discount period for sales. With year-end inventories on the horizon, some buyers think they may be able to pick up tons at a lower premium from those sellers willing to move inventory.
The Davis Index for P1020A was flat at 13.4¢/lb delivered US consumers under the three-month LME Aluminium contract on Monday. Simultaneously, the 6063 billet premium was at 8.5¢/lb above the P1020A premium, the same as last week.
Market participants have positioned themselves into a wait and see stance preferring to use this time to ready themselves to strike at the right time with the outcome of the US election, the COVID-19 pandemic, and the macroeconomy all in play. Most believe the presidential election is decided but understand that the Biden administration must deal with the election fraud challenges, which prevent him from making decisions on the business world and allow companies to move forward. Stalling decisions for now and keeping the market flat for the time being.
The three-month LME Aluminium contract closed today at $1,985.5/mt, up $39/mt from its close at $1,946.50/mt on Nov 16.