Platinum/Palladium Converting Price Holds for Automotive

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The monthly Automotive MMI® registered a value of 97 in September, on par with August’s value.

Automotive_Chart_September-2014_FNL

In this summer of stagnant prices for industrial metals, palladium and platinum are helping the Automotive MMI retain its price. You can read more about the glimmer twins’ rise in this month’s Global Precious Metals MMI, but both are running away from their precious and industrial metal cousins and palladium even has automakers considering switching to platinum for their catalytic converter needs. Tighter vehicle emissions standards in mainland China are part of the reason for the renewed push for newer, cleaner converters.

See why our Auto MMI® is a leading indicator: download the Monthly MMI® Report.

Automotive steel prices were actually up this month as ArcelorMittal invested heavily in a German steel alloy plant and Chrysler struck back in the aluminum vs. steel car wars when it chose to keep its Jeep Wrangler 4×4 steel-bodied for the foreseeable future. A recently released PricewaterhouseCoopers (PwC) report said Chinese automotive growth would double in the next decade. Novelis continues to invest heavily in its plant providing automotive aluminum for Ford’s 2015 F-150 pick-up but steel’s grip on the market is still very tight outside of Ford and a few European automakers.

US automakers saw their sales boom in August as easier credit and a wave of new products fueled showroom traffic, driving the industry’s annualized rate above 17 million — the fastest pace since July 2006. It was the best August for the industry in 11 years. Overall, the industry sold more than 1.58 million cars and trucks, a 5% increase over last August with one fewer selling day.

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US HDG rose 1.8 percent to $779.00 per short ton. US palladium bar saw its price rise 1.5 percent to $883.00 per ounce.

A 3.8 percent drop over the past month left US platinum bar at $1,400 per ounce. The copper 3-month price saw a small decline on the LME this month, falling from $7,120 to $6,941 per metric ton. On the LME, the primary copper cash price fell a slight 2.4 percent over the past month to $6,966 per metric ton. At $2,393 per metric ton, the Chinese lead price was down 0.8 percent.

Last month was consistent for Korean 5052 coil premium over 1050 sheet, which did not move from $3.84 per kilogram.

The Automotive MMI® collects and weights 7 metal price points used in automotive production to provide a unique view into automotive metal trends over a 30-day period. For more information on the Automotive MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.

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