We don’t often say a reading of “flat” makes for a healthy market, but in comparison to some of the other market index readings this month, aluminum held fairly steady.
The monthly Aluminum MMI® registered a value of 93 in May, on par with April’s value.
In fact, only the cash and 3-month LME aluminum prices fell from one month ago, whereas Chinese billet, bar and scrap saw modest increases.
“Aluminum likely remains range-bound as absent any dramatic drop-off in demand, or newly announced smelter closures, we don’t see tremendous price support – despite some analysts such as HARBOR still forecasting rising prices during the second half of 2013,” said Lisa Reisman, managing editor of MetalMiner. “On the flip side, we do see some longer price support for semi-finished aluminum products as aluminum-bodied cars come into full production,” she said.
Primary Price Drivers
Chinese aluminum scrap gained 2.1 percent. The Chinese aluminum cash price saw its value rise 0.8 percent. Chinese aluminum billet prices increased nearly $20 per metric ton on the month.
The price of European 1050 aluminum fell 5.5 percent. The Indian aluminum cash price fell 5.2 percent over the past month. After falling 3.0 percent, European 5083 plate finished the month down. At $1,846 per metric ton, the cash price of primary aluminum was down 1.9 percent on the LME. The aluminum 3-month price finished the month at $1,886 per metric ton after dropping 1.3 percent on the LME.
Korean 3003 coil premium over 1050 sheet held pat last month. Korean 5052 coil premium over 1050 sheet did not budge the entire month. Chinese aluminum bar experienced a flat month. Korean 1050 aluminum sheet remained unchanged.
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.