Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The weekly Davis Index for P1020A and 6063 billet premiums delivered US Midwest remained unchanged on Monday. 


This week’s sales activity was lower on the spot market as the US stock market and metals exchanges stumbled on their recovery runs. 


The weekly Davis Index premium for P1020A was flat at 8.7¢/lb delivered US Midwest, under the three-month LME aluminum contract on Monday.


The index for 6063 billet premiums was also unchanged at 5.8¢/lb delivered US Midwest under the same LME aluminum contract.


The three-month LME aluminum contract closed on Monday, $1,570.5/mt down by $25.5/mt from $1,596/mt on June 8.


News of states in the US reopening brought a new sense of vigor and anticipation of a comeback to the metals industry. However, fear remained prevalent on news of COVID-19 cases increasing in those same states.


Market participants plan to continue down this cautiously optimistic path after the latest macroeconomic data indicated that employment increased by 2.5 million jobs in May, reducing the unemployment rate to 13.3pc down from its peak of 14.7pc in April. The positive macroeconomic data was welcome news, but unemployment numbers need to drop by another 10 points to return to pre-shutdown levels.

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