Aluminum made strong moves this week on the London Metal Exchange. Aluminum hit a new 17-month high at $2,039 per ton and the stock of aluminum companies such as Alcoa keeps soaring.
MetalMiner Lead Forecasting Analyst Raul De Frutos wrote “for the first time since 2011, aluminum seems to be acting like a bull.”
It’s not just Alcoa reaping the rewards, either. Novelis said it expects to double automotive production by 2018 and just raised prices of several automotive products yesterday. A decision in the appeal of UC Rusal’s lawsuit against the LME regarding warehouse rules has been delayed until at least October, as well, which means that warehoused aluminum from backed-up-queue LME facilities will not provide relief to buyers and traders looking to get their hands on the suddenly-hot metal.
The week’s biggest mover on the weekly Aluminum MMI® was European 5083 plate, which saw a 6.5 percent increase to EUR 2,728 ($3,650) per metric ton. In the past week, European 1050 aluminum saw its price shift up 1.7 percent to EUR 2,275 ($3,044) per metric ton. Korean 3003 coil premium over 1050 sheet traded sideways last week, hovering around KRW 3,740 ($3.62) per kilogram. Following a steady week, prices for Korean 5052 coil premium over 1050 sheet closed flat at KRW 3,890 ($3.76) per kilogram.
Chinese aluminum prices were mixed for the week. The Chinese aluminum cash price shifted up 0.2 percent to close at CNY 13,960 ($2,265) per metric ton this week. Chinese aluminum bar prices held steady from the previous week at CNY 14,200 ($2,304) per metric ton. Closing at CNY 13,590 ($2,205) per metric ton, Chinese aluminum billet remained unchanged for the week.
Finishing the fourth week of rising prices, the Indian aluminum cash price increased by 1.9 percent, finishing at INR 125.20 ($2.04) per kilogram. Closing at $1,983 per metric ton, the primary aluminum cash price remained unchanged on the LME for the week. This past week, the 3-month price of aluminum kept quiet, holding at on the LME at $1,993 per metric ton.
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.