The monthly Aluminum MMI® registered a value of 99 in October, an increase of 5.3 percent from 94 in September.
MetalMiner’s aluminum price index moved up this month due to broad price improvement for primary aluminum (e.g. the LME), but also for European sheet and plate prices (the former due to European automotive demand) as well as price support from Korea and China.
Source: MetalMiner IndX℠
“Typically, when we see movement within one of our indexes it tends to come from a portion of metals that comprise the overall basket, and/or the movement comes from those metals that are weighted heavier in the index calculation,” said Lisa Reisman, managing editor of MetalMiner.
“However, in the case of this month’s Aluminum MMI® price rise, all of the constituent metals from all markets showed an increase,” she said.
Rising physical premiums, as previously reported by MetalMiner, suggest strong demand. Also, producers such as Alcoa and Rusal have been closing smelters, portending future cuts in supply. Read more about what’s behind the run-up in aluminum prices.
Which Prices Driving the Aluminum Index Rise?
At $2,126 per metric ton, the aluminum 3-month price finished the month on the LME 12.4 percent higher. This was the second straight month of declines.
The price of European commercial 1050 aluminum sheet rose 6.3 percent over the past month after holding steady the previous month. The price of European 5083 plate increased 0.9 percent after staying flat in September.
The Chinese aluminum cash price rose 1.9 percent, and Chinese aluminum billet rose 1.7 percent over the past month.
The price of Korean 1050 aluminum sheet rose 1.6 percent over the past month.
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.