US aluminum premiums for P1020A and 6063 billets trended flat during the week as the uptrend in premiums after the US’s imposition of tariffs on Canadian aluminum leveled off.

 

The weekly Davis Index for P1020A was flat at 15.2¢/lb delivered US under the three-month LME Aluminum contract on Monday. The index for 6063 billet premium was at 7.7¢/lb above the P1020A premium, also balanced from a week ago.

 

Demand for primary aluminum has not changed much since the premiums were in the 10-12¢/lb range a few weeks ago. Supply remains the main driver for change, but that shift has been artificial, mostly relating to Canada’s response to the US tariffs. The increase in premium has pushed transactional pricing higher, but just below the level that makes sense for importers to sell into the US market. 

 

The three-month LME aluminum contract closed on Friday at $1,797.50/mt, up by $21.50/mt from $1,776/mt on August 24. The LME market was closed on Monday per the UK banking holiday schedule.

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