The monthly Automotive MMI® registered a value of 104 in October, an increase of 3.0 percent from 101 in September.
Source: MetalMiner IndX℠
For the second month in a row, MetalMiner’s automotive metals index has climbed higher than its January 2012 baseline reading of 100.
This index reading closely follows the movement of monthly auto sales, up 11 percent from last year’s September figures. Toyota and Volkswagen both had good months. Monthly auto sales for September may reach 15 million units on an annualized basis, according to Chrysler’s U.S. sales chief, Reid Bigland as quoted by the AP.
“Most of the elements that comprise the monthly automotive index increased in price, including precious metals, copper, and lead,” said Lisa Reisman, managing editor of MetalMiner. “Only US HDG prices fell slightly, as did shredded scrap prices.”
“We will continue to monitor US steel prices closely as they have continued to slide…we suspect HDG prices will also show some price weakness as steel raw material costs fall,” Reisman continued.
Price Drivers of Automotive Metals Index Rise
The price of US platinum bar climbed 11.4 percent, and LME copper 3-month prices rose 8.4 percent. For the second month in a row, the price of Chinese lead increased, rising 4.7 percent over September.
US HDG prices fell 4.8 percent after rising 3.1 percent the previous month. US shredded scrap prices were down 6.7 percent for the month.
Meanwhile, Korean 5052 coil premium over 1050 sheet increased 1.6 percent.
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.