The weekly Davis Index for A380.1 fell by 0.8¢/lb to $1.06/lb delivered US consumer as production cut backs have begun to pressure markets.
A global semi-conductor shortage finally impacted the US market, leading to car manufacturers such as Ford and General Motors cutting production, beginning next week. Market participants expect this to lower demand and in turn, pricing for alloys in the short-term.
Still, the weekly index for A360.1 trended flat at $1.115/lb delivered while A413.1 inched up by 0.5¢/lb to $1.13/lb delivered. The index for 319.1 increased by 1.8¢/lb to settle at $1.11/lb.
Despite negative cues from the auto industry, LME Nasaac warehouse stocks have continually depleted over the past week by about 100mt per day. Inventories are hovering around the 18,200mt mark.
The three-month LME aluminium contract closed Friday at $2,012/mt, up by $25/mt from $1,987/mt on Jan 29.