The weekly US premiums for new aluminum delivered moved higher for P1020A and held the same as last week for 6063 billets.
The LME Aluminium market lost its contango position with cash offers and the official three-month contract equalizing on Jan 11, due to potentially troubling news out of China over the weekend.
The weekly Davis Index for P1020A premium was higher by 0.2¢/lb at 15.1¢/lb delivered US consumer under the three-month LME Aluminium contract on Monday. Simultaneously, the 6063 billet premium remained unchanged at 8.5¢/lb above the P1020A premium.
China has reportedly had another outbreak of the COVID-19 pandemic, sending the futures market lower. If China were to enter into another round of lockdowns, the ripple effect could devastate the global recovery.
The three-month LME Aluminium contract closed Monday at $2,008/mt, down $8/mt from its close at $2,016/mt on Jan 4.