Source: MetalMiner IndX℠
The monthly Aluminum MMI® registered a value of 94 in September, an increase of 1.1 percent from 93 in August.
“Though certainly not setting the world on fire, aluminum has shown some surprising strength this past month for a couple of reasons,” said Lisa Reisman, managing editor of MetalMiner. “Stimulus announcements have lent recent support and some production cutbacks have begun to impact available aluminum stocks.”
However, many analysts including Harbor Aluminum believe the recent price run-ups toward $2,000 per metric ton may not last, because producers have failed to cut capacity to match declining global demand.
Select Price Drivers of the Aluminum Index Increase
After dropping the previous month, the aluminum 3-month price prices rose 1 percent on the LME to $1,890 per metric ton.
The Indian aluminum cash price dropped 1.1 percent, continuing a steady slide downward over the past several months.
Chinese aluminum bar ticked up 0.4 percent. Chinese aluminum scrap prices also increased 0.4 percent. Meanwhile, Chinese aluminum billet saw its price drop 0.2 percent, and after dropping the previous month, the Chinese aluminum cash price decreased 0.4 percent.
The Korean 3003 coil premium over 1050 sheet, as well as the Korean 5052 coil premium over 1050 sheet both ticked up marginally last month. Korean 1050 aluminum sheet did not move.
However, prices for European 5083 plate showed upward movement, rising 2.2 percent. European 1050 aluminum prices also increased 2.2 percent.
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.