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

The Davis Index 6063 billet premium settled at 23.1¢/lb on Monday, down by 1.9¢/lb from last week as buyers began to negotiate a more realistic price after material flows resumed. 


The billet market resumed trading at the predicted price of 22-23¢/lb. Still, some traders agreed with a premium of 25¢/lb because of the tight supply of material. Scrap in this segment has been unavailable, leading to a seller’s market.


The P1020 premium slipped to 28¢/lb, down 0.2¢/lb due to inactivity in the primary aluminum market and pressure from the slipping automotive production scenario due to the semiconductor shortage. The news of China releasing its 800,000mt of state aluminum reserves has given rise to speculation. However, the nature and method of the liquidation will ensure minimal impact on actual pricing in the market. 


The official LME Aluminium cash price settled Monday at $2,358/mt ($1.07/lb), down $146/mt from Jun 14. 

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