The ongoing LME pricing fight and higher demand for aluminum as the Spring/Summer construction season starts could lead to a domestic shortage of the price-challenged metal later this year. Alcoa, on the heels of a quarterly loss and downgrades, announced it may cut production at other facilities this week. The largest US aluminum producer has already shut down two smelters this year.
On Monday, April 14, the day’s biggest mover was the cash price of primary Indian aluminum, which saw a 2.3 percent decline to INR 112.80 ($1.87) per kilogram. After improving for two days, the primary aluminum cash price declined 0.7 percent on the LME to $1,840 per metric ton. Following two days of rising prices, the aluminum 3-month price dropped 0.5 percent on the LME to $1,872 per metric ton.
Chinese aluminum prices were mixed for the day. The Chinese aluminum cash price inched up 0.1 percent to CNY 12,915 ($2,072) per metric ton. The price of Chinese aluminum scrap remained essentially flat at CNY 12,250 ($1,966) per metric ton. The price of Chinese aluminum billet was unchanged at CNY 13,590 ($2,181) per metric ton. The price of Chinese aluminum bar continues hovering around CNY 14,200 ($2,278) per metric ton for the fifth day in a row.