Acquisitions and deals came to the fore this week for aluminum’s major players. UC Rusal pledged 75% of its Irish alumina plant Aughinish Alumina against a credit from Glencore Xstrata for alumina supplies in 2014-2016.
Not to be outdone, Alcoa (formerly aluminum company of America) invested $25 million in its Virginia jet engine plant and that was just the prelude before it acquired jet engine manufacturer Firth Rixson for $2.85 billion today. Done? Not yet. Evidence also surfaced this week that Alcoa’s partnership with Ford Motor Co. for aluminum-bodied vehicles might expand from the already-aluminum 2015 Ford F-150 to include Ford’s Super Duty pickup trucks soon.
The week’s biggest mover on the weekly Aluminum MMI® was the cash price of primary Indian aluminum, which saw a 2.3 percent increase to INR 114.00 ($1.90) per kilogram. This week marked the third in a row of rising prices for the metal. The primary aluminum cash price rose 2.1 percent on the LME to $1,866 per metric ton after falling 0.4 percent during the previous week. The 3-month price of aluminum rose 1.7 percent on the LME to $1,902 per metric ton after falling 0.1 percent during the previous week.
Chinese aluminum prices were mixed for the week. The cash price of Chinese aluminum rose 0.6 percent to CNY 13,300 ($2,133) per metric ton after falling 1.1 percent during the previous week. Chinese aluminum bar prices held steady from the previous week at CNY 14,200 ($2,278) per metric ton. At CNY 13,590 ($2,180) per metric ton, the week finished with no movement for Chinese aluminum billet.
Prices for Korean 3003 coil premium over 1050 sheet remained constant, closing the week at KRW 3,740 ($3.67) per kilogram. Following a steady week, prices for Korean 5052 coil premium over 1050 sheet closed flat at KRW 3,890 ($3.82) per kilogram. At EUR 2,532 ($3,459) per metric ton, the price of European 5083 plate did not change since the previous week. Closing at EUR 2,139 ($2,922) per metric ton, European 1050 aluminum remained unchanged for the week.
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.