The Davis Index P1020 premium delivered Midwest settled Monday at 30.9¢/lb, above LME Aluminium cash, up by 0.9¢/lb from last week. Deals were made at premiums as high as 31.25¢/lb.
Pure aluminum ingot and t-bars’ supply continues to dwindle amid fewer exports from Russia and lower domestic capacity. Many participants who had stepped to the sidelines tried to cut their losses amid a resurgence in buying after a few international transactions lifted the demand outlook. With freight still a concern, there seems to be very little relief in the near term.
On the other hand, the Davis Index 6063 billet premium fell to 25¢/lb above P1020, down 1.9¢/lb as participants realized that organic demand was much lower than expected. Extruders have seen a slump over the past few days as construction activity has slowed in the summer heat. Meanwhile, new capacities are being realized across the country, improving supply.
The official LME Aluminium cash price settled Monday at $2,499.50/mt, up $74.50/mt from Jul 19.