US primary aluminum premiums were unchanged this week, as market participants wait for price direction, amid the US stock market selloff and concerns over the possible Coronavirus epidemic.
The Davis Index premium for P1020 delivered US Midwest was flat Monday at 14¢/lb under the three-month LME aluminum contract, while the 6063 billet del US premium remained unchanged at 7¢/lb under the same LME Aluminum contract.
Ample supply of primary aluminum from Canada has been keeping the premium for P1020 delivered US Midwest suppressed since the start of Q3 2019 when the premium was in the range of 19-20¢/lb.
The aluminum markets began the week on a hectic note as market participants await more details on the breadth of the US stock market selloff that started Monday and the supply chain implications of the Coronavirus outbreak.
The three-month official LME price for aluminum dropped to $0.8019/lb on Monday, from $0.8223/lb a week prior.