Automakers’ increasing use of aluminum and production cuts from Alcoa, UC Rusal and Rio Tinto Alcan are boosting aluminum and creating the supply/demand market balance that the major producers have been chasing for the last three years. While prices are still flat to down on most indexes, many analysts, including BMO Research, are saying aluminum has turned a corner.
On Thursday, June 12, the cash price of primary Indian aluminum fell by 1.7 percent, landing at INR 110.60 ($1.86) per kilogram and making it the day’s biggest mover. The cash price of primary aluminum weakened by 1.6 percent on the LME, settling at $1,835 per metric ton. On the LME, the 3-month price of aluminum declined 1.2 percent to $1,871 per metric ton.
Chinese aluminum prices closed flat for the day. The price of Chinese aluminum scrap saw little movement at CNY 12,250 ($1,967) per metric ton. The price of Chinese aluminum billet continues hovering around CNY 13,590 ($2,182) per metric ton for the fifth day in a row. The price of Chinese aluminum bar held steady at CNY 14,200 ($2,280) per metric ton. Following a two-day rise, the cash price of Chinese aluminum flattened at CNY 13,370 ($2,147).