The weekly Davis Index aluminum premiums for P1020 moved up while 6063 trended flat on limited supply for both grades.
The Davis Index P1020 premium rose by 1.4¢/lb to 22¢/lb above the LME Aluminium price. The premium for this grade is expected to rise further as industry sentiment has turned bullish after President Biden announced the $2.3tn American Jobs Plan to overhaul the country’s infrastructure.
If passed into law by Congress, the spending from this plan would see a rise in aluminum consumption amid tight supply, which is expected to improve only after H2 2021.
The premium for 6063 billet remained unchanged at its multi-year peak of 24.5¢/lb above P1020. Market participants reported a dearth of spot material, with very little billet changing hands recently. Demand remains strong amid growing construction activity and a lack of scrap.
The official LME Aluminium cash price settled Thursday at $2,212.50/mt. The LME remained closed for the Easter holidays on Monday.