Aluminum Could Rise on Late Year Automotive Demand

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Source: Novelis

According to the new chief of Japan’s Aluminum industry association, if other automakers follow in Ford’s footsteps and release models made from the lightweight metal, its price could rise by as much as a third to $2,500 per ton, International Auto News reported this week.

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While the metal has already seen niche usage in high-end automotive products, the decision to employ it within the construction of a mainstream model like Ford’s F-150 pickup could trigger a revolution in its rivals’ next models.

“If automakers follow Ford’s step to use more aluminum, supply of the metal will become short and prices could rise as high as around $2,500 per tonne,” Takashi Ishiyama, chairman of the Japan Aluminum Association told International Auto News.

With a 2.1 percent increase over the past day, the cash price of primary Indian aluminum was the biggest mover, closing at INR 119.45 ($1.99) per kilogram on Wednesday, July 16. On the LME, the primary aluminum cash price rose 0.3 percent to $1,928 per metric ton. On the LME, the 3-month price of aluminum increased 0.2 percent to $1,946 per metric ton.

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Chinese aluminum prices were flat for the day. For the fifth day in a row, the price of Chinese aluminum scrap remained essentially flat at CNY 12,250 ($1,974) per metric ton. The price of Chinese aluminum billet held steady at CNY 13,590 ($2,190) per metric ton. The price of Chinese aluminum bar remained essentially flat at CNY 14,200 ($2,288) per metric ton. The Chinese aluminum cash price saw little change in its price yesterday at CNY 13,450 ($2,167) per metric ton.

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