This week the London Metal Exchange won its appeal of a case in the UK that initially prohibited it from establishing new rules for aluminum load-in and load-out at its bonded warehouses. While there was much rejoicing, many caution that new rules, even if they withstand appeal, will not keep aluminum from going into deficit next year.
MetalMiner Editor-at-Large Stuart Burns sagely points out that there are a lot more hurdles for the LME to iron out before announcing its new rules early next year. And of course, Russian aluminum giant UC Rusal has promised to appeal. Stay tuned.
Aleris Corp., the aluminum maker owned by Oaktree Capital Management LP, agreed to sell its recycling unit to Signature Group Holdings Inc. for $525 million in cash and stock.
Global Recycling and Specification Alloys is the largest independent recycler of aluminum, Sherman Oaks, California-based Signature said today in a statement. The growth in recycled aluminum consumption is expected to outpace primary aluminum for the next decade, it said.
The week’s biggest mover on the weekly Aluminum MMI® was the 3-month price of aluminum, which saw a 0.5% decline on the LME to $1,940 per metric ton. This comes on the heels of a 0.9% increase the week before. The cash price of primary aluminum fell 0.4% on the LME to $1,912 per metric ton after rising 1.2% the week before. The cash price of primary Indian aluminum stayed essentially flat at INR 119.55 ($1.95) per kilogram.
Chinese aluminum prices were flat for the week. The cash price of Chinese aluminum remained steady from the previous week at CNY 13,960 ($2,273) per metric ton. Closing at CNY 14,200 ($2,312) per metric ton, Chinese aluminum bar remained unchanged for the week. Chinese aluminum billet prices held steady from the previous week at CNY 13,590 ($2,213) per metric ton.
Korean 3003 coil premium over 1050 sheet traded sideways last week, hovering around KRW 3,740 ($3.50) per kilogram. At KRW 3,890 ($3.64) per kilogram, the price of Korean 5052 coil premium over 1050 sheet did not change since the previous week. Following a steady week, prices for European 5083 plate closed flat at EUR 2,841 ($3,593) per metric ton. Prices for European 1050 aluminum remained constant, closing the week at EUR 2,365 ($2,991) 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.