This month the Aluminum Monthly Metals Index (MMI) rose by 3.5%, as the aluminum price made gains in October.
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Aluminum prices and demand increase
The LME aluminum price reached a 17-month high on Oct. 16 at $1,863.50/mt. The price has increased over 27% since its pandemic low of $1,459.50/mt. Prices dropped the last week of October but have since recovered sharply.
The aluminum price continues to rise along with demand.
According to the JP Morgan Global Manufacturing PMI, global manufacturing activity increased to 53.0 in October. The October reading marked the PMI’s best in 29 months. In the the North American market, the U.S. and Canada saw increases in new orders and production, along with Germany.
In Asia, manufacturing rose rapidly in China, India and South Korea.
The recent sharp increase in coronavirus cases — and consequent lockdowns — could be a risk to the improving manufacturing sector, particularly in Europe.
In the manufacturing sector, aluminum is used for construction, packaging and transport.
Strong demand in China
China continues to show signs of strong aluminum demand.
Unwrought aluminum and aluminum product imports remained high at 355,999 metric tons during September despite decreasing compared to 426,469 metric tons in August.