The monthly Aluminum MMI® registered a value of 99 in December, an increase of 4.2 percent from 95 in November.
Aluminum prices increased this past month primarily due to rising LME prices along with European semi-finished prices. MetalMiner recently penned a piece examining production cutbacks and possible impacts on aluminum prices. We can sum up the conclusion again here: “Excess supply equals strong forward curve, equals strong financial buying, equals tight physical market, equals limited smelter closures…and so it goes on.”
“Meanwhile,” said Lisa Reisman, managing editor of MetalMiner, “the monthly aluminum index has closed nearly at its January 2012 baseline open of 100, despite a tactical buy signal for aluminum from our friends at Harbor Aluminum; this index has performed comparatively well against our other monthly indexes.”
Drivers of Rising Aluminum Price Index
After dropping the previous month, the cash price of primary Indian aluminum prices rose 11.2 percent to INR 114.40 ($2.09) per kilogram.
The cash price of Chinese aluminum rose 0.3 percent to CNY 15,190 ($2,438) per metric ton after falling the previous month. Chinese aluminum billet barely shifted up 0.1 percent last month to settle at CNY 15,200 ($2,440) per metric ton. At a price of CNY 12,900 ($2,071) per metric ton, Chinese aluminum scrap also barely budged for the month, up 0.1 percent.
European 5083 plate finished the month at EUR 2,761 ($3,607) per metric ton. European 1050 aluminum reached EUR 2,293 ($2,996) per metric ton.
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.