The US premiums for P1020A and 6063 were range-bound over the week in a market bracing for a change after the US presidential election.
The weekly Davis Index for P1020A was marginally lower at 12.3¢/lb delivered US consumers under the three-month LME Aluminum contract on Monday, worse by 0.2¢/lb. On the other hand, the 6063 billet premium remained unchanged at 7.5¢/lb above the P1020A premium.
The US presidential election is a week away and participants are trying to gauge the market’s direction based on who wins the White House. However, any of the outcomes could prove positive for aluminum as the metal’s versatility has kept the market optimistic about the future, national politics notwithstanding. Still, a decision about the path forward will depend on the policies that will reign from the White House over the next four years.
The three-month LME aluminum contract closed on Monday at $1,837.50/mt, down by $21.50/mt from its close at $1,859/mt on Oct 19.