The monthly Automotive MMI® continues to outperform most of the other indexes in MetalMiner’s MMI series by climbing 3.1 percent from 96 to 99. In 2013, we’ll likely reach all-time US auto sales highs as August sales beat demand at 16.09 million units on an annual basis. GM reaped the biggest benefits, posting an increase of 14.7%.
Car sales have grown due to leasing arrangements as opposed to actual outright car purchases. Consumer confidence and easier credit have allowed car companies to reap the benefits of these types of sales. According to the New York Times, leasing has seen a revival due to low interest rates, a strong used car market with higher residual values.
“Auto sales numbers have helped support the monthly index, though with auto sales at pre-recession highs, we find it curious that the Automotive MMI® hasn’t performed even better,” said Lisa Reisman, managing editor of MetalMiner. “This month’s MMI saw price support from precious metals, rising copper and aluminum prices.”
Nonetheless, the two-month upward price trend reflects positive demand.
Metal Drivers of Automotive Price Index
The price of Chinese lead rose 6.3 percent over the past month to $2,397 per metric ton, the second straight month of gains. The price of US platinum bar closed the month up 5.9 percent at $1,521 per ounce. For the second month in a row, the 3-month price of copper increased, rising 4.6 percent on the LME over the past month to $7,122 per metric ton. The cash price of primary copper rose 4.3 percent on the LME over the past month to $7,094 per metric ton.
After rising the previous month, US palladium bar prices jumped 9.4 percent to $736.00 per ounce.
The price of Korean 5052 coil premium over 1050 sheet increased 1.0 percent to $3.92 per kilogram last month. Last month was consistent for US HDG, which did not move from $751.00 per short ton.
The Automotive MMI® collects and weights 7 metal price points used in automotive production to provide a unique view into automotive metal trends over a 30-day period. For more information on the Automotive MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.