The monthly Automotive MMI® registered a value of 99 in August, an increase of one percent from 98 in July.
Somewhat surprisingly, the Automotive MMI® notched up a point on the back of rising HDG (hot dipped galvanized), lead and palladium prices.
This complex, a mix of metals used within the automotive sector, highlights the strength of demand. And though the Automotive MMI® peaked in February and March with a reading of 108, the complex remains resilient against a backdrop of sagging demand across other sectors.
US auto sales for July are in the black, with a total of 1,153,682 light vehicles sold, as the Big Three continue to see positive numbers for 2012. However, Chrysler is the only US auto major with positive year-on-year sales for July; GM and Ford are down.
“We saw steel prices trough a few weeks ago, and though they have not increased significantly, we can see a floor to prices and that provided the greatest support to the Automotive MMI®,” said Lisa Reisman, executive editor of MetalMiner. “We do, however, remain cautious as we continue to monitor consumer demand trends.”
Drivers of the Auto Index Increase
US HDG shifted up 1.7 percent last month. US palladium bar prices inched up 2.1 percent to $589.00 per ounce. The price of Chinese lead rose two percent after falling the previous month.
The 3-month price of copper ended the month on the LME at $7,525 per metric ton, down from $7,585. For the second month in a row, the price of US platinum bar declined, falling 1.4 percent over the past month to $1,420 per ounce.
The price of Korean 5052 coil premium over 1050 sheet inched up very slightly over the past month, after closing flat last month.
The Automotive MMI® collects and weights 7 metal price points used in automotive production to provide a unique view into automotive metal trends over a 30-day period. For more information on the Automotive MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.