The Davis Index for P1020A and 6063 billets split their movement this week, with the premiums for the former lowering and the latter increasing marginally.
The Davis Index for P1020A declined by 0.2¢/lb to 13.4¢/lb delivered US consumer under the three-month LME Aluminum contract, while 6063 billet premiums increased by the same amount to 7.3¢/lb above the P1020A premium on Monday.
The US’ removal of tariffs on Canadian aluminum imports within a month of imposing them, has left the market confused about moving forward. For now, most US buyers are happy that their acquisition costs are lower. Canadian sellers, on the other hand, are concerned about supplying too much material to the US market, which could result in new tariffs being levied by the US in the future.
Overall, the market has remained quiet over the week as market participants tried to gauge emerging trends from the drops on the LME and increasing uncertainty over the potential results of the US Presidential elections in November. As a result, both buyers and sellers prefer to adopt the wait and see mode and are looking for supply from Canada to increase as both sides of the border try to balance the low-priced Canadian material’s volumes that remain under the US Trade Commission’s radar.
The three-month LME aluminum contract closed on Monday at $1,777/mt on Monday, down by $8/mt from $1,785/mt on September 22.