Down 4.1%, It’s Time For Aluminum to Prove Itself

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The monthly Aluminum MMI® registered a value of 93 in October, a decrease of 4.1% from 97 in September.

Aluminum_Chart_October-2014_FNL2

Abraham Lincoln once said…

“The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.”

Now, do these wise words have something to do with aluminum? Yes, they do.

Aluminum surged this year, outperforming most industrial metals, mainly thanks to the boost of aluminum use in US and European car design markets to make them lighter. However, this surge was supported by a better performance of commodities through the first half of the year. Since September, aluminum is correcting as commodities got hit by a strong US Dollar.

Here is when the quote fits like a glove: Now that the environment is not favoring industrial metals, will aluminum be able to keep this year’s gains? Will it behave like a true leader or will it let itself being pushed down with the rest of commodities?

It will be interesting to see how aluminum prices finish the year. So far, the losses experienced in September should be seen as a correction after a strong run. Unless further declines happen, there is no reason to become bearish on aluminum yet.

For more information on how you should react based on what aluminum is doing and when is the right time to start buying aluminum going forward is, take a look at our forecasting offering, and take a free trial.

* Get the complete prices every day on the MetalMiner IndX℠

After rising the previous month, primary cash aluminum prices dropped 7.1% on the LME to $1,934 per metric ton. Indian aluminum primary prices fell 6.3% to $1.95 per kilogram after rising the previous month. After rising the previous month, aluminum 3-month prices dropped 6.0% on the LME to $1,969 per metric ton. European 1050 aluminum prices fell 5.0% to $2,986 per metric ton after rising the previous month.

European 5083 plate rose 2.4% to $3,588 per metric ton.

At a price of $2,274 per metric ton, the Chinese aluminum cash price did not budge the entire month. Hovering around $3.55 per kilogram for the month, Korean 3003 coil premium over 1050 sheet remained unchanged. Last month was consistent for Korean 5052 coil premium over 1050 sheet, which did not move from $3.69 per kilogram. Chinese aluminum bar experienced a flat month, staying around $2,313 per metric ton. Chinese aluminum billet traded sideways last month, staying around $2,214 per metric ton. Prices for Korean 1050 aluminum sheet remained constant this past month, holding at around $3.50 per kilogram. Chinese aluminum scrap traded sideways last month, staying around $1,996 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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