Aluminum prices rose to a 13-month high as inventories tracked by the London Metal Exchange reached their lowest since 2012.
Stockpiles have dropped 8.6 percent this year to 4.99 million metric tons. Orders to withdraw aluminum account for 59 percent of inventories, compared with 43 percent at the end of 2013. Prices have climbed 8.9 percent in 2014.
“A large proportion of the stockpile is still not available to the general market,” Edward Meir, an analyst at INTL FCStone in New York, said in a Bloomberg News report.
At $1,923 per metric ton, the aluminum cash price moved up 0.9 percent on Tuesday, July 15, making it the day’s biggest mover on the LME. After a 0.6 percent increase, the 3-month price of aluminum finished the day on the LME at $1,943 per metric ton. The cash price of primary Indian aluminum closed at INR 117.00 ($1.95) per kilogram. Following a couple days of improvement, prices fell by 0.4 percent.
Chinese aluminum prices were mixed for the day. The cash price of Chinese aluminum gained 0.3 percent, closing at CNY 13,450 ($2,167) per metric ton. For the fifth consecutive day, the price of Chinese aluminum scrap held flat at CNY 12,250 ($1,974) per metric ton. The price of Chinese aluminum billet was unchanged at CNY 13,590 ($2,190) per metric ton. The price of Chinese aluminum bar saw little movement at CNY 14,200 ($2,288) per metric ton.