Constellium CSTM, which makes aluminum products for a variety of markets, recently announced it would buy Wise Metals Intermediate Holdings LLC in a deal valued at $1.4 billion, including $455 million in cash and the assumption of $945 million in debt, as it aims to capture more of the growing US market for automotive aluminum sheet. The Wall Street Journal reported the deal earlier this month.
Privately held Wise, based in Muscle Shoals, Ala., currently supplies aluminum for the beverage and food can industry. Paris-based Constellium is looking to compete in the US with Alcoa and Novelis.
The week’s biggest mover on the weekly Automotive MMI® was the price of US palladium bar, which saw a 4.6% decline to $762.00 per ounce. This comes on the heels of a 3.2% increase the week before. The price of US platinum bar fell 1.6% over the past week to $1,254 per ounce. This was the third week in a row of declining prices.
US HDG remained essentially flat from the previous week at $765.00 per short ton.
The 3-month price of copper rose 0.6% on the LME over the past week to $6,745 per metric ton. The cash price of primary copper settled at $6,781 per metric ton this week after shifting up 0.4% on the LME. At KRW 3,890 ($3.64) per kilogram, the week finished with no movement for Korean 5052 coil premium over 1050 sheet. Following a steady week, prices for the Chinese lead price closed flat at CNY 14,700 ($2,393) per metric ton.
The Automotive MMI® collects and weights 7 metal price points used in automotive production to provide a unique view into automotive metal trends. 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.