The US aluminum premiums were flat for both P1020A and 6063 billets over the past week. With buyers taking stock of their year-end inventories, the LME Aluminium market also leveled off after a week of increasing prices, settling slightly below its starting point a week ago.
Market participants saw the potential for discounts moving forward, but tight supply has not allowed much room for this kind of movement.
The weekly Davis Index for P1020A was flat at 13.1¢/lb delivered US consumers under the three-month LME Aluminium contract on Monday. Simultaneously, the 6063 billet premium was unchanged at 8.5¢/lb above the P1020A premium.
The change in the US administration and the potential for different trade policies has participants wondering about the trends that will define the aluminum market in 2021.
The three-month LME aluminum contract closed on Monday at $2,018.5/mt, down $4/mt from its close at $2,022.5/mt on Nov 30.