Another week in “As the Aluminum Turns” finished with the London Metal Exchange taking another swing at fixing its load-in, load-out pricing issue by offering a regional aluminum premium contract to allow consumers such as beverage can users and automakers to hedge against the premiums paid to producers on top of the price of metal.
MetalMiner‘s own Stuart Burns expounded on the disconnect between the LME and reality when it comes to pricing and how the upcoming shutdown of smelters by producers such as Alcoa will impact the aluminum market.
Meanwhile, manufacturers continued to attempt to gain more market share via products such as Novelis’ 90% recyclable sheet for beverage cans and Alcoa’s introduction of a 47% lighter aluminum truck wheel to try to gain business from the weight standards-conscious automotive sector.
Closing at INR 112.25 ($1.87) per kilogram, a 2.6 percent increase made the Indian aluminum cash price the week’s biggest mover on the weekly Aluminum MMI®. At $1,791 per metric ton, the primary aluminum cash price finished the week 0.8 percent higher on the LME. The 3-month price of aluminum rose 0.4 percent on the LME over the past week to $1,823 per metric ton. This was the third week in a row of increasing prices.
Chinese aluminum prices were mixed for the week. Last week, the cash price of Chinese aluminum shifted slightly, rising by 0.5 percent to close at CNY 12,755 ($2,057) per metric ton. Chinese aluminum bar prices held steady from the previous week at CNY 14,200 ($2,290) per metric ton. At CNY 13,590 ($2,192) per metric ton, the week finished with no movement for Chinese aluminum billet.
Korean 3003 coil premium over 1050 sheet traded sideways last week, hovering around KRW 3,740 ($3.54) per kilogram. Following a steady week, prices for Korean 5052 coil premium over 1050 sheet closed flat at KRW 3,890 ($3.68) per kilogram. Prices for European 5083 plate remained constant, closing the week at EUR 2,486 ($3,423) per metric ton. European 1050 aluminum remained essentially flat from the previous week at EUR 2,052 ($2,825) per metric ton.
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.