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

The weekly Davis Index aluminum premiums for P1020 moved up while 6063 trended flat on limited supply for both grades. 


The Davis Index P1020 premium rose by 1.4¢/lb to 22¢/lb above the LME Aluminium price. The premium for this grade is expected to rise further as industry sentiment has turned bullish after President Biden announced the $2.3tn American Jobs Plan to overhaul the country’s infrastructure. 


If passed into law by Congress, the spending from this plan would see a rise in aluminum consumption amid tight supply, which is expected to improve only after H2 2021. 


The premium for 6063 billet remained unchanged at its multi-year peak of 24.5¢/lb above P1020. Market participants reported a dearth of spot material, with very little billet changing hands recently. Demand remains strong amid growing construction activity and a lack of scrap. 


The official LME Aluminium cash price settled Thursday at $2,212.50/mt. The LME remained closed for the Easter holidays on Monday. 

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