The monthly Aluminum MMI® registered a value of 93 in August, a decrease of 3.1 percent from 96 in July.
The Aluminum MMI® declined slightly more than it would have due to a change in the way aluminum scrap from China factors into the overall Aluminum MMI®.
The lion’s share of the decline came as a result of falling primary aluminum prices in China (as well as declining scrap prices), slightly lower European semis pricing — particularly for 1050 commercial sheet and 5083 plate — along with the primary cash price in India.
“This month’s index drop would have mirrored the one-point drop we saw in the Copper MMI®, but due to a re-factoring of the aluminum scrap price within the Chinese market, the Aluminum MMI® experienced a more significant drop,” said Lisa Reisman, managing director of MetalMiner.
“Therefore, we believe aluminum remains fairly well-supported, similar to the copper market, and we would urge readers not to draw too many conclusions regarding a strong negative price trend,” she continued.
Drivers of the Aluminum Price Index Drop
For the second month in a row, the price of Chinese aluminum scrap declined, falling 22.1 percent over the past month. The price of Chinese aluminum billet closed the month down 0.7 percent. Last month, the cash price of Chinese aluminum dropped one percent. Chinese aluminum bar prices decreased 0.4 percent.
On the LME, the aluminum 3-month price finished the month at $1,886 per metric ton after increasing one percent.
European 1050 aluminum drifted down 0.6 percent last month. European 5083 plate, meanwhile, saw its price drop 1.5 percent. The Indian aluminum cash price dropped one percent.
Both Korean 3003 coil premium over 1050 sheet and Korean 5052 coil premium over 1050 sheet inched up very slightly for the month. The price of Korean 1050 aluminum sheet made its way up slightly last month as well.
The Aluminum MMI® collects and weights 12 global aluminum price points to provide a unique view into aluminum price trends over a 30-day period. For more information on the Aluminum MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.