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

The Davis Index P1020 premium rose by 1.4¢/lb to 25.9¢/lb above the LME Aluminium cash price as limited supply continued to push prices higher. 


Domestic inventories of primary aluminum are dropping even as demand for it remains strong, resulting in higher premiums. The uncertainty in cost of replacement also continues to be a major factor for traders looking for the material. 


A lack of imports continues to tighten supply. Still, if premiums continue to climb, traders may soon have enough margin and impetus to import despite the Section 232 Tariffs. The Aluminum Association hinted in its Spring Meeting about dropping the tariffs for countries like Canada, which form an integral part of the US’ supply chain. 


Meanwhile, the 6063 billet premium inched up to 25¢/lb above the P1020 premium on a lack of spot traded material. A seller-dominated market has seen this premium reach as high as 26¢/lb in a highly competitive market for buyers. 


The official LME Aluminium cash price settled Friday at $2,445/mt ($1.109), up by $57/mt from Apr 26 while the Exchange remained shut on Monday, observing International Labor day.

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