Aluminum Price Keeps Roaring – And So Does Alcoa Inc

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The monthly Aluminum MMI® registered a value of 97 in September, an increase of 2.1 percent from 95 in August, with the backdrop of Alcoa’s stock still rising.

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Aluminum prices are still on fire on the LME. Last week the 3-month price reached a new 17-month high at $2,107/metric ton, as it keeps soaring on a perfect trend-line without experiencing any setbacks. A stronger dollar and a poorer overall performance of commodities during this quarter seem unable to stop this metal from reaching new ground. Meanwhile, Alcoa Inc. stock hit a new high last week as well.

3M Aluminum LME price since 2013

3M LME Aluminum price since 2013. Source: LME

We first warned of this potential bullish move in June and ever since, aluminum hasn’t looked back. The fundamentals keep improving as aluminum continues its way up. We had seen some analysts pointing out that the surge was unstable due to the gigantic stocks overhanging the metal’s fundamentals; however, if you took the time to study history, you already know the poor predictability of inventory levels over metal prices.

Why is MetalMiner the Authority on Aluminum? Learn more.

Nonethless, here’s how MetalMiner’s Aluminum MMI® looks this September:

Aluminum_Chart_September-2014_FNL3

What This Means For Aluminum Buyers

There is not much to think about when it comes to buying aluminum right now. While the trend is up, you’d better be hedged. So far, the trend is up and there are no signs of weakness. If Alcoa can reach a 6-year high, so can aluminum.

This Month’s Aluminum Price Trends

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After rising 9.4 percent, European 1050 aluminum finished the month at $3,268 per metric ton. At $2.13, the Indian aluminum cash price finished the month up 5.4 percent. The aluminum 3-month price closed the month at $2,095 per metric ton after gaining 3.7 percent on the LME. On the LME, the cash price of primary aluminum climbed 3.2 percent, settling at $2,082 per metric ton. The price of European 5083 plate increased 1.7 percent to $3,643 per metric ton. The Chinese aluminum cash price saw its value rise 0.2 percent to $2,273 per metric ton.

Last month was consistent for Korean 3003 coil premium over 1050 sheet, which did not move from $3.69 per kilogram. The price of Korean 5052 coil premium over 1050 sheet held steady around $3.84 per kilogram last month. Chinese aluminum bar experienced a flat month, staying around $2,312 per metric ton. Prices for Chinese aluminum billet remained constant this past month, holding at around $2,213 per metric ton. The price of Korean 1050 aluminum sheet held steady around $3.64 per kilogram last month. Chinese aluminum scrap traded sideways last month, staying around $1,995 per metric ton.

The Aluminum MMI® collects and weights 12 global aluminum price points to provide a unique view into aluminum price trends over a 30-day period. 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.

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