MetalMiner’s monthly Aluminum MMI® climbed 1.1% on rising 3-month LME aluminum prices. European semis pricing also improved against a more optimistic manufacturing performance by many of the countries within the EU.
Long-time aluminum industry observers know that September serves as a good buying month. In other words, the rock-bottom lowest aluminum prices of the year might not occur in September, but overall, September represents a good month to lock in known short-term demand for the balance of the year.
“Our friends at Harbor Aluminum conduct this type of purchasing analysis each year, and though aluminum prices remain above earlier year-lows, this early part of September remains a good time to take some commodity risk off the table,” said Lisa Reisman, managing editor of MetalMiner. “Our own forecast models suggest price weakness now, but that could change after the next couple of weeks.”
More importantly, we have begun to see some slippage of the Midwest aluminum premium price, which helps most buying organizations with large aluminum buys.
At $2,836 per metric ton, European 1050 aluminum finished the month up 5.0 percent. For the second month in a row, the cash price of primary aluminum increased, rising 2.5 percent on the LME over the past month to $1,775 per metric ton. European 5083 plate gained 2.4 percent to finish the month at $3,501 per metric ton. The aluminum 3-month price rose 2.2 percent over the past month to $1,817 per metric ton, the second straight month of gains. Chinese aluminum bar shifted up 1.1 percent last month to settle at $2,319 per metric ton. At $2,335, Chinese aluminum billet finished the month up 0.4 percent per metric ton. The cash price of Chinese aluminum inched up 0.3 percent to $2,335 per metric ton.
Chinese aluminum scrap prices remained relatively flat. The Indian aluminum cash price drifted a bit to close the month at $1.69 per kilogram.
At a price of $3.79 per kilogram, Korean 3003 coil premium over 1050 sheet improved slightly. Korean 5052 coil premium over 1050 sheet rose a bit to $3.92 per kilogram. The price of Korean 1050 aluminum sheet improved marginally to $3.74 per kilogram last month.
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.