Aluminum prices fell again this week but more prospects for future automotive use in the US indicated that the second half of 2014 might be better to aluminum.
Constellium and UACJ announced plans for a $150 million joint venture plant in Bowling Green, Ky., specifically to build automotive aluminum body-in-white sheet for the US market. Fiat Chrysler CEO Sergio Marchionne was also candid this week at the company’s analyst day about the future prospects for aluminum in the company’s Dodge Ram truck line and its popular Jeep Wrangler.
American automakers need to lighten the weight of trucks and SUVs for the 2015 model year because of more-stringent corporate average fuel economy (CAFE) standards from the National Highway Transportation Safety Administration (NHTSA) due to go into effect next year.
The week’s biggest mover on the weekly Aluminum MMI® was the aluminum cash price, which saw a 2.3 percent decline on the LME to $1,729 per metric ton. This week marked the third in a row of declining prices for the metal. With a 2.1 percent decrease on the LME, the 3-month price of aluminum closed the week at $1,773 per metric ton. At INR 106.25 ($1.77) per kilogram, the Indian aluminum cash price finished the week down 2.0 percent.
Chinese aluminum prices were mixed for the week. The Chinese aluminum cash price declined to CNY 13,240 ($2,123) per metric ton after drifting 0.4 percent since last week. Prices for Chinese aluminum bar remained constant, closing the week at CNY 14,200 ($2,277) per metric ton. Chinese aluminum billet prices held steady from the previous week at CNY 13,590 ($2,179) per metric ton.
European 5083 plate fell 2.0 percent over the past week to EUR 2,436 ($3,389) per metric ton. European 1050 aluminum prices ticked up 1.8 percent over the past week to EUR 2,088 ($2,905) per metric ton. At KRW 3,740 ($3.65) per kilogram, the week finished with no movement for Korean 3003 coil premium over 1050 sheet. Following a steady week, prices for Korean 5052 coil premium over 1050 sheet closed flat at KRW 3,890 ($3.80) per kilogram.
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.