This week in aluminum, US Senator Carl Levin (D – Mich.), the chairman of the US Senate Permanent Subcommittee on investigations, said Goldman Sachs Group practices “merry go-round deals” in which aluminum is moved from location to location to drive up the prices paid for storage.
Goldman Managing Director Jacques Gabillon disputed Levin’s accusations, saying long wait times for aluminum stockpiles had no affect on the prices for companies and consumers.
Norsk Hydro also delayed increasing its output capacity for 2015 and a federal judge said that Alcoa, Inc., will have to prove it owns riverbeds in North Carolina over which it operates dams that the aluminum giant is using to sell hydroelectric power. Alcoa previously used the dams to power a local smelter, which shut down in 2007.
“When everything is said and done, you can say there is no correlation,” Gabillon said. He added that Goldman is committed to selling Metro International, its Detroit area network of metals warehouses
The week’s biggest mover on the weekly Aluminum MMI® was the price of Chinese aluminum scrap, which saw a 8.1% decline to CNY 11,900 ($1,939) per metric ton. This comes on the heels of a 5.7% increase the week before. The Chinese aluminum cash price rose 0.4% to CNY 13,720 ($2,235) per metric ton after falling 0.1% during the previous week. At CNY 14,200 ($2,313) per metric ton, the week finished with no movement for Chinese aluminum bar. Chinese aluminum billet prices held steady from the previous week at CNY 14,000 ($2,281) per metric ton.
The cash price of primary aluminum rose 3.7% on the LME to $2,099 per metric ton after falling 1.9% during the previous week. The aluminum 3-month price rose 2.5% on the LME to $2,065 per metric ton after falling 2.0% during the previous week. The cash price of primary Indian aluminum rose 1.9% to INR 128.10 ($2.07) per kilogram after falling 0.4% during the previous week.
Over the past week, European 1050 aluminum rose 4.7% to EUR 2,613 ($3,268) per metric ton. One of the big movers this week was European 5083 plate, which shot up 3.5% to reach EUR 2,954 ($3,694) per metric ton. Korean 3003 coil premium over 1050 sheet remained essentially flat from the previous week at KRW 3,740 ($3.36) per kilogram. Prices for Korean 5052 coil premium over 1050 sheet remained constant, closing the week at KRW 3,890 ($3.50) per kilogram.
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.