The weekly Davis Index for P1020A and 6063 billet premium delivered US Midwest continued to slip on Monday on waning demand. 

 

The Davis Index premium for P1020A declined by 2.1¢/lb to 10.1¢/lb delivered US Midwest, under the three-month LME aluminum contract on Monday while the premium for 6063 billets decreased by 2¢/lb to 4.5¢/lb, delivered US Midwest under the same LME aluminum contract.

 

Market participants were concerned about the excess supply and capacity of primary aluminum before demand decreased significantly because of the COVID-19 crisis. As a result, premiums have been forced to retreat, in a market left with little strength, to the brink of becoming a discount if the trend continues through the summer months.

 

The LME was closed on Monday because of Easter holidays in the UK but will reopen for business on Tuesday.

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