The monthly Aluminum MMI® registered a value of 95 in November, an increase of 2.2% from 93 in October.
As we pointed out in our last report, October was going to be the time for aluminum to prove itself in the face of a bearish commodities market. Last month, commodities fell 4% while aluminum kept advancing. Despite the big gains experienced this year, aluminum is holding its gains well in this last quarter, proving there is a strong investors’ appetite for this base metal.
Strong fundamentals remain in place as increasing use of the lightweight metal in car manufacturing pushes global demand growth while we keep seeing producers cutting output.
Price strength is not only seen in the raw material, but also in aluminum stocks. Alcoa Inc., is again near its highest levels in 4 years, and it could soon breakthrough to its highest level since 2011.
What This Means For Metal Buyers
Aluminum keeps outperforming the rest of industrial metals. This metal could significantly increase in 2015. However, its upside potential will be limited while commodities keep falling.
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.
The cash price of primary aluminum closed the month at $2,057 per metric ton after gaining 6.3% on the LME. After rising 5.5%, European 1050 aluminum finished the month at $3,156 per metric ton. At $2.07, the Indian aluminum cash price finished the month up 5.0%. On the LME, the 3-month price of aluminum climbed 3.4%, settling at $2,036 per metric ton. For the second month in a row, the price of European 5083 plate increased, rising 0.5% over the past month to $3,609 per metric ton.
Over the past month, the cash price of Chinese aluminum traded sideways, staying around $2,273 per metric ton. Korean 3003 coil premium over 1050 sheet experienced a flat month, staying around $3.50 per kilogram. At a price of $3.64 per kilogram, Korean 5052 coil premium over 1050 sheet did not budge the entire month. Last month was consistent for Chinese aluminum bar, which did not move from $2,312 per metric ton. Chinese aluminum billet experienced a flat month, staying around $2,213 per metric ton. Korean 1050 aluminum sheet held pat last month at $3.45 per kilogram. At a price of $1,995 per metric ton, Chinese aluminum scrap did not budge the entire month.
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.