Aluminum MMI®: The Week That Everyone Pulled Out of LME Warehouses

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Source: Novelis

This week, soaring physical delivery premiums and a stronger London Metal Exchange price are sucking primary aluminum into the US market. According to Reuters the bulk has come from Canada with October’s imports surging to 268,000 tons, equivalent to 1.91 million tons per year, up 25% from September and 17% from the same month a year before.

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Rising Canadian imports in October run against a trend that has seen Canadian imports fall this year partly as Rio Tinto has closed an older technology plant at it’s Kitmat smelter in preparation for the start up next year of new technology raising output there to 420,000 tons.

The week’s biggest mover on the weekly Aluminum MMI® was the price of Chinese aluminum bar, which saw a 8.0% decline to CNY 13,290 ($2,152) per metric ton. This comes on the heels of a 1.7% increase the week before. In the past week, Chinese aluminum scrap saw its price shift up 1.6% to CNY 12,800 ($2,072) per metric ton. The cash price of Chinese aluminum saw a 1.3% drop this week, closing at CNY 13,280 ($2,150) per metric ton. The price of Chinese aluminum billet declined 0.7% over the past week, settling at CNY 13,600 ($2,202) per metric ton.

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Since last week, the price of the cash price of primary Indian aluminum fell to INR 122.00 ($1.96) per kilogram after moving 1.3%. The cash price of primary aluminum closed last week at $1,950 per metric ton, after a 0.8% drop on the LME. On the LME, the 3-month price of aluminum closed at $1,965 per metric ton after a flat week.

Following a steady week, prices for Korean 3003 coil premium over 1050 sheet closed flat at KRW 3,740 ($3.40) per kilogram. At KRW 3,890 ($3.53) per kilogram, the week finished with no movement for Korean 5052 coil premium over 1050 sheet. European 5083 plate remained essentially flat from the previous week at EUR 2,954 ($3,660) per metric ton. European 1050 aluminum traded sideways last week, hovering around EUR 2,613 ($3,238) 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.

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