The Davis Index for P1020A was half a cent lower than the previous week as premiums continued to struggle against weak demand and abundant supply from higher production.
North America’s primary aluminum production has averaged more per month in 2020 than last year, yet premiums have failed to gain traction and are expected to continue to do so until demand improves.
The weekly Davis Index for P1020A was lower by 0.5¢/lb at 8.6¢/lb delivered US under the three-month LME Aluminum contract on Monday, while the 6063 billet premium was flat at 6¢/lb delivered under the same LME contract.
The three-month LME aluminum contract closed on Monday, $1,658/mt down by $37.5/mt from $1,695.5/mt on July 13.
The USMCA, and the Sec 232 tariffs, together have given North American primary aluminum ingots producers more leverage in the marketplace, creating an imaginary bubble around the continent and have prevented imports from profitably competing at the current premium levels. Most imports would need to see premiums above the 12¢/lb range before considering selling into the US market.