Aluminum rose to a two-week high this week as European equities rebounded and London Metal Exchange warehouse inventories of the metal dropped for a seventh session to their lowest since 2012, adding to signs of limited supply.
As a result, hedge fund managers and other speculators are increasing their bets on aluminum.
Rising 2.5 percent on the LME to $2,043 per metric ton, the aluminum 3-month price saw the largest increase on the weekly Aluminum MMI® this week. The cash price of primary aluminum rose 2.2 percent on the LME over the past week to $2,026 per metric ton. The cash price of primary Indian aluminum fell 1.0 percent to INR 123.95 ($2.03) per kilogram after rising 1.9 percent the week before.
Chinese aluminum prices were flat for the week. The cash price of Chinese aluminum remained steady from the previous week at CNY 13,960 ($2,268) per metric ton. Closing at CNY 14,200 ($2,307) per metric ton, Chinese aluminum bar remained unchanged for the week. Chinese aluminum billet remained essentially flat from the previous week at CNY 13,590 ($2,208) per metric ton.
Prices for Korean 3003 coil premium over 1050 sheet remained constant, closing the week at KRW 3,740 ($3.63) per kilogram. Closing at KRW 3,890 ($3.78) per kilogram, Korean 5052 coil premium over 1050 sheet remained unchanged for the week. At EUR 2,728 ($3,646) per metric ton, the week finished with no movement for European 5083 plate. Following a steady week, prices for European 1050 aluminum closed flat at EUR 2,275 ($3,041) 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.