Novelis Inc., the aluminum recycler and producer, appears to be moving shrewdly in an oversupplied market.
Citing greater demand for specialty aluminum sheet products from the automotive industry, Novelis in increasing prices for aluminum sheet in Europe by 160 Euro per ton. This “price change is effective immediately for all new orders not covered by current supply agreements,” according to a news release.
The aluminum company continues to build new production facilities, from New York state to China, to keep up its supply – but we wonder, will these economics work in an oversupplied market? Perhaps, if LME warehousing really is distorting the actual global aluminum market…
Today’s Aluminum Prices
The week’s biggest mover on the weekly Aluminum MMI® was the Indian aluminum cash price, which saw a 1.5 percent decline. This comes on the heels of a 4.6 percent increase the week before.
Following a 2.4 percent increase in the week prior, the primary aluminum cash price fell 0.7 percent on the LME last week to $1,761 per metric ton. The 3-month price of aluminum fell 0.7 percent on the LME to $1,805 per metric ton after rising 2.1 percent the week before.
Chinese aluminum prices were mixed for the week. Following a 0.7 percent increase in the week prior, the price of Chinese aluminum billet fell 0.3 percent last week. The price of Chinese aluminum scrap fell 0.2 percent after rising 4.8 percent the week before. The Chinese aluminum cash price remained essentially flat.
Korean 3003 coil premium over 1050 sheet remained unchanged for the week. Korean 5052 coil premium over 1050 sheet prices held steady also. European 5083 plate remained essentially flat from the previous week. Prices for European 1050 aluminum remained constant also.
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.