US primary aluminum premiums remained unchanged from last week, as North American supply exceeded the current level of demand.

 

The weekly Davis Index premium for P1020a delivered US Midwest remained at 13.8¢/lb under the three-month LME aluminum contract on Monday while the 6063 billet del US premium was flat at 7¢/lb under the same LME Aluminum contract.

 

The premiums for both P1020a and 6063 have remained the same for the past three weeks. The global market balance for aluminum is projected to have a surplus between a 0.6mn-1mn mt in 2020, reversing a 0.9mn-1.1mn mt deficit in 2019. Given this trend of oversupply, demand will have to increase significantly for premiums to rise.

 

The three-month official LME price for aluminum increased to $0.7788/lb on Monday, from $0.7743/lb in the prior week.

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