Alcoa announced its quarterly earnings, and their global aluminum demand outlook looks pretty dim – especially for China – as the biggest mover on MetalMiner’s weekly Aluminum MMI® was the LME aluminum cash price, which saw a 3.8 percent decline to $1,991 per metric ton.
The LME aluminum price drop comes on the heels of a 1 percent increase the week before. Following a 1.1 percent increase in the week prior, the aluminum 3-month price fell 3.7 percent on the LME last week to $2,020 per metric ton.
As Jack Farchy details in the FT, Alcoa noted that the biggest fall in demand will be for heavy trucks and trailers in China. “At the start of the year the company anticipated 3-8 per cent growth. Three months ago it revised that to a 3-8 per cent decline. Now it expects a steep drop of 18-21 per cent,” Farchy reports.
However, Alcoa did upgrade its demand forecasts for the automotive and aerospace industries heading into 2013.
Prices in China and India also fell.
For the third week in a row, the cash price of primary Indian aluminum dropped, falling 2.5 percent.
Chinese aluminum prices were mixed for the week. The Chinese aluminum cash price fell 0.9 percent after rising 0.1 percent the week before. Chinese aluminum billet fell 0.6 percent over the past week. Following a steady week, prices for Chinese aluminum bar closed flat.
The week finished with no movement for Korean 3003 coil premium over 1050 sheet. Korean 5052 coil premium over 1050 sheet traded sideways last week as well.
European 5083 plate prices held steady from the previous week, and prices for European 1050 aluminum closed flat.
The Aluminum MMI® collects and weights 12 global aluminum price points to provide a unique view into aluminum price trends. 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.