Rusal CEO Oleg Deripaska is makin’ moves – to help his company’s margins.
Bloomberg reported that Deripaska indicated 8.4% of the company’s production output will be halted this year to help support aluminum prices. “The company will idle 350,000 tonnes of capacity at five of its plants with high production costs until aluminum rises to USD 2,400 per tonne. Aluminum prices fell more than 13% this year to USD 1,799 per tonne as global stockpiles reached records and last month traded at the lowest level since 2009,” he is quoted as saying.
Prices for Chinese aluminum bar saw the biggest increase on the weekly Aluminum MMI® this week, rising 1.1 percent. The price of Chinese aluminum billet declined 0.4 percent over the past week. The cash price of Chinese aluminum fell 0.1 percent. The price of Chinese aluminum scrap did not change since the previous week.
Closing out the third week of rising prices, the Indian aluminum cash price increased by 0.9 percent. This past week, the primary aluminum cash price kept quiet, holding at on the LME at $1,731 per metric ton. On the LME, the aluminum 3-month price traded sideways last week, hovering around $1,778 per metric ton.
Korean 3003 coil premium over 1050 sheet traded sideways last week. Korean 5052 coil premium over 1050 sheet remained essentially flat. Following a steady week, prices for European 5083 plate closed flat. European 1050 aluminum prices held steady.
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.