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

The premium for aluminum scrap 6063 fared better on Monday than P1020A premium.


The weekly Davis Index premium for P1020A was flat at 9.6¢/lb delivered US Midwest, under the three-month LME aluminum contract on Monday while the premium for 6063 billet ticked up by 1.1¢/lb to 5.8¢/lb delivered US Midwest under the same LME aluminum contract.


Domestic aluminum scrap supply to smelters remains tight. Market participants are getting better prices for aluminum scrap exports because of which, there is little volume left for domestic smelters, thereby forcing their hand back into the primary markets. 


Market participants are hopeful but cautious with many states across the US starting to reopen after government-imposed shutdowns. Concerns over a spike in COVID-19 cases and a relapse back into closures, however, make it difficult to plan for the long term.


The three-month LME aluminum contract closed on Monday at $1,491/mt down by $14/mt from $1,477mt on May 4.

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