MetalMiner’s monthly automotive metal index registered a value of 101 in November, a decrease of 2.9 percent from 104 in October.
The monthly auto metals price index fell by three points primarily due to across-the-board metal price drops, particularly HDG coil, US shredded scrap, precious metals — both platinum and palladium — floundering copper as well as semifinished aluminum sheet prices.
Ironically, automotive sales continue to outperform 2011 numbers, growing by 7 percent from a year ago for an annualized run rate of 14.3 million units (compared to 12.8 million units last year), according to data from Autodata Corp.
“We caution readers to note the data still appears positive in comparison to the January 2012 baseline reading of 100,” noted Lisa Reisman, MetalMiner’s managing editor.
More commentary and individual price movements below.
“MetalMiner IndX℠ data, by its nature, takes into consideration the basket of global metals used in that particular industry,” Reisman said, “so although the automotive industry and sales statistics performed well this past month, specific metal prices took their pricing cues from global supply and demand for those metals.”
Price Drivers of Dropping Auto Industry Metals Index
The price of US HDG closed the month down 6 percent, while the price of US shredded scrap declined 10.4 percent over the past month.
The price of US palladium bar closed after dropping 6.2 percent. US platinum bar prices finished the month even lower, falling 6.5 percent.
Copper 3-month prices fell 5.1 percent on the LME to $7,823 per metric ton after rising 9.5 percent the previous month. LME copper primary cash prices also dropped accordingly.
Prices for Korean 5052 coil premium over 1050 aluminum sheet increased 2.6 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.