Aluminum headed for the biggest weekly gain on the LME since November 2012 yesterday as orders to withdraw the metal from warehouses surged while producers began to cut output. Warehouse withdrawals, known in the industry as canceled warrants, jumped the most this week since December 2012, Bloomberg News reported.
Traders marked nearly 300,000 metric tons for warehouse withdrawal at Vlissingen, Netherlands, the biggest LME aluminum warehouse. Alcoa said last week it will reduce capacity at Brazilian smelters made uncompetitive by lower prices and higher costs.
Korean 1050 aluminum sheet saw a 11.3 percent decline this week, finishing at KRW 3,690 ($3.49) per kilogram and making it the week’s biggest mover on the weekly Aluminum MMI®. The price of Korean 3003 coil premium over 1050 sheet decreased to KRW 3,740 ($3.54) per kilogram, a 11.2 percent decline from the previous week. Korean 5052 coil premium over 1050 sheet prices fell to KRW 3,890 ($3.68) per kilogram, down from KRW 4,360 ($4.08) a week ago. Following a 1.5 percent increase, European 5083 plate finished the week at EUR 2,486 ($3,423) per metric ton.
Chinese aluminum prices were mixed for the week. The Chinese aluminum cash price rose 2.1 percent to CNY 12,690 ($2,045) per metric ton after falling 0.2 percent during the previous week. Prices for Chinese aluminum bar remained constant, closing the week at CNY 14,200 ($2,288) per metric ton. Closing at CNY 13,590 ($2,190) per metric ton, Chinese aluminum billet remained unchanged for the week.
The cash price of primary Indian aluminum rose 5.6 percent to INR 109.45 ($1.83) per kilogram after falling 4.4 percent during the previous week. The cash price of primary aluminum saw a 4.2 percent increase in its price, hitting $1,776 per metric ton on the LME. The 3-month price of aluminum increased 3.8 percent over the past week to $1,816 per metric ton on the LME.
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