UC Rusal, Natixis Expect Aluminum Shortage, Novelis Needs New Sheet Customers

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UC Rusal, the world’s largest producer of aluminum, believes that premiums paid to secure aluminum will exceed $500 a metric ton as soon as the coming quarter on stronger demand and limited supplies, implying a jump of at least 20 percent.

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Rusal is not alone. French analysis firm Natixis believes aluminum’s surplus will evaporate by Fall, as well.

In Asia, however, Novelis told analysts that it will need to find new customers for its aluminum beverage can sheet as demand in China is still wanting.

Prices for European 5083 plate saw the biggest increase on the weekly Aluminum MMI® this week, rising 3.9 percent and settling at EUR 2,532 ($3,450) per metric ton. European 1050 aluminum rose 2.4 percent over the past week to EUR 2,139 ($2,915) per metric ton. Closing at KRW 3,740 ($3.66) per kilogram, Korean 3003 coil premium over 1050 sheet remained unchanged for the week. At KRW 3,890 ($3.81) per kilogram, the price of Korean 5052 coil premium over 1050 sheet did not change since the previous week.

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Chinese aluminum prices were mixed for the week. Following a 1.8 percent increase in the week prior, the cash price of Chinese aluminum fell 0.7 percent last week to CNY 13,180 ($2,109) per metric ton. At CNY 14,200 ($2,272) per metric ton, the week finished with no movement for Chinese aluminum bar. Chinese aluminum billet remained essentially flat from the previous week at CNY 13,590 ($2,174) per metric ton.

The aluminum 3-month price fell 1.1 percent on the LME to $1,821 per metric ton after rising 4.9 percent the week before. Following a 5.1 percent increase in the week prior, the cash price of primary aluminum fell 0.3 percent on the LME last week to $1,796 per metric ton. The Indian aluminum cash price fell 0.3 percent to INR 109.05 ($1.84) per kilogram after rising 5.4 percent the week before.

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.

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