LME aluminum

Aluminum fell the most in more than a week as slumping oil prices signal lower costs to produce the energy-intensive metal. Nickel rose.

FREE Download: The Monthly MMI® Report – covering the Aluminum market.

“The entire commodity complex is having a reaction to crude and the U.S. dollar strength,” Bart Melek, the head of commodity strategy at TD Securities in Toronto, Told Bloomberg News by e-mail. “There is that potential on the headlines and less Petro dollars available to invest in the commodity space.”

While crude is not the primary source of energy for the aluminum producers, energy accounts for about 30 percent of output costs and falling oil prices may have a deflationary impact, according to Macquarie Group Ltd. OPEC took no action to ease a global supply glut, sending Brent and West Texas Intermediate futures to the lowest in more than four years.

* Get the complete prices every day on the MetalMiner IndX℠

Chinese aluminum bar had the largest decline on Monday, December 1, dropping 7.4% and landing at CNY 13,520 ($2,201) per metric ton. The price of Chinese aluminum scrap fell 2.3% to CNY 12,700 ($2,067) per metric ton. The Chinese aluminum cash price weakened by 0.7%, settling at CNY 13,520 ($2,201) per metric ton. Chinese aluminum billet held its value on Monday at CNY 13,900 ($2,263) per metric ton.

On the LME, the aluminum 3-month price declined 1.9% to $2,025 per metric ton. On the LME, the primary aluminum cash price fell 1.3% to $2,071 per metric ton. The Indian aluminum cash price saw a 0.9% decline to INR 125.65 ($2.02) per kilogram.

Bloomberg News’ Matt Levine says the idea that moving aluminum in and out of warehouses in suburban Detroit caused prices to go up “is exactly false: There was a glut of aluminum, and the price went down.”

FREE Download: The Monthly MMI® Report – covering the Stainless/Nickel markets.

Check out his detailed analysis of the Senate Permanent Subcommittee on Investigations’ report at Bloomberg View.

On Friday, November 28, Chinese aluminum scrap jumped up 9.2%, landing at CNY 13,000 ($2,117) per metric ton and making it the day’s biggest increase. On the tail of a three-day flat streak, the price of Chinese aluminum bar rose by 2.8%, settling at CNY 14,600 ($2,378) per metric ton. The cash price of Chinese aluminum fell 0.7% to CNY 13,620 ($2,218) per metric ton. After three essentially changeless days, the price of Chinese aluminum billet dropped 0.7% last Friday to CNY 13,900 ($2,264) per metric ton.

* Get the complete prices every day on the MetalMiner IndX℠

The cash price of primary Indian aluminum declined 1.0% to INR 126.80 ($2.05) per kilogram. Following a two-day rise on the LME, the 3-month price of aluminum flattened at $2,064. After a couple of days of improving prices on the LME, the primary aluminum cash price held steady at $2,098.

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.

FREE Download: The Monthly MMI® Report – covering the Aluminum market.

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.

* Get the complete prices every day on the MetalMiner IndX℠

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.

Norsk Hydro ASA, Europe’s third-largest aluminum producer, will further delay starting idled plants and investing in new capacity to help shore up prices of the lightweight metal.

FREE Download: The Monthly MMI® Report – covering the Aluminum market.

“We will hold back, because we think it’s important to maintain a tight physical market to maintain good aluminum prices,” Chief Executive Officer Svein Richard Brandtzaeg said in an interview today in Oslo. “There’s been too much capacity for too many years, which has given low profitability in this sector. We don’t wish to contribute to that.”

At $2,099 per metric ton, the cash price of primary aluminum moved up 0.7% on Thursday, November 27, making it the day’s biggest mover on the LME. On the LME, the aluminum 3-month price inched up 0.3% to $2,065 per metric ton. Following two days of rising prices, the Indian aluminum cash price dropped 0.1% to INR 128.10 ($2.07) per kilogram.

* Get the complete prices every day on the MetalMiner IndX℠

Chinese aluminum closed mixed yesterday. The Chinese aluminum cash price fell 0.1% to CNY 13,720 ($2,235) per metric ton. Chinese aluminum scrap held its value yesterday at CNY 11,900 ($1,939) per metric ton. The price of Chinese aluminum billet held steady at CNY 14,000 ($2,281) per metric ton. The price of Chinese aluminum bar was unchanged at CNY 14,200 ($2,313) per metric ton.

<span style=”color: #0000ff;”><a href=”https://agmetalminer.com/monthly-report-metal-price-index-trends-november-2014/” target=”_blank”><span style=”color: #0000ff;”><strong>FREE Download: The Monthly MMI® Report – covering the Aluminum market.</strong></span></a></span>

Alcoa Inc. will have to show it has ownership rights to the riverbed under 4 North Carolina dams it has operated for as much as a century, a federal judge recently ruled.

FREE Download: The Monthly MMI® Report – covering the Aluminum market.

US District Judge Terrance Boyle recently decided that a trial starting in 2 months was needed to sort out the claims over riverbed ownership crucial to operating the Yadkin River hydropower dams.

“The availability of clean water and affordable power sources is critical to the welfare of Twenty-First Century America. At its core, this case highlights the importance of these two vital resources,” Boyle wrote in his ruling. “Alcoa has the burden of proving valid title at trial.”

The lawsuit brought last year by Gov. Pat McCrory’s (R) administration involved deciding who owns 40 miles of the Yadkin River bottom on which Alcoa and its predecessor built dams that once powered an aluminum smelter. The plant employed thousands before closing in 2007. The company has sold the electricity to commercial customers since then. Alcoa sold about $34 million of electricity over the year ending in September.

With the jobs now gone, McCrory and his Democratic predecessor, Beverly Perdue, have resisted a new federal license for Alcoa that would allow it or a future buyer to continue operating the dams for up to 50 years, according to the Raleigh News & Observer.

Dropping 0.8% on the LME, the aluminum cash price was the biggest mover on Tuesday, November 25, closing at $2,060 per metric ton. The 3-month price of aluminum weakened by 0.7% on the LME, settling at $2,048 per metric ton. The cash price of primary Indian aluminum rose 0.3% to INR 127.40 ($2.06) per kilogram.

* Get the complete prices every day on the MetalMiner IndX℠

Chinese aluminum prices were flat for the day. The cash price of Chinese aluminum held steady around CNY 13,720 ($2,234) per metric ton. At CNY 12,550 ($2,044) per metric ton, the price of Chinese aluminum scrap was essentially unchanged. Chinese aluminum billet saw little change in its price yesterday at CNY 14,000 ($2,280) per metric ton. The price of Chinese aluminum bar remained essentially flat at CNY 14,200 ($2,312) per metric ton.

Alcoa has announced the completion of its acquisition of Firth Rixson, a leading jet engine components manufacturer. The company had announced the Firth Rixson aqcusition in June. The total consideration for the acquisition is $2.85 billion, consisting of $2.35 billion in cash and $500 million in stock. In addition, there is a potential $150 million earn-out, the payment of which depends on Firth Rixson’s performance through 2020.

FREE Download: The Monthly MMI® Report – covering the Aluminum market.

The acquisition is a part of Alcoa’s ongoing strategic shift of its product portfolio towards value-added products, which are more profitable as compared to its upstream businesses.

On Monday, November 24, the day’s biggest mover was the price of Chinese aluminum scrap, which saw a 3.1% decline to CNY 12,550 ($2,049) per metric ton. Closing out a three-day flat streak, the cash price of Chinese aluminum moved up 0.4% to CNY 13,710 ($2,239) per metric ton. The price of Chinese aluminum bar remained essentially flat at CNY 14,200 ($2,319) per metric ton. At CNY 14,000 ($2,286) per metric ton, the price of Chinese aluminum billet was essentially unchanged.

* Get the complete prices every day on the MetalMiner IndX℠

On the LME, the primary aluminum cash price rose 3.0% to $2,077 per metric ton. On the LME, the aluminum 3-month price increased 2.6% to $2,063 per metric ton. After a 0.6% increase, the Indian aluminum cash price finished the day at INR 127.00 ($2.06) per kilogram.

If US Senator Carl Levin (D. Mich.) expected apologies and conciliatory remarks from Jacques Gabillon, a Goldman Sachs managing director called to testify before the Senate Permanent Subcommittee on Investigations, he did not get it.

FREE Download: The Monthly MMI® Report – covering the Aluminum market.

Levin, the chairman of the subcommittee, said Goldman practices “merry go-round deals” in which aluminum is moved from location to location to drive up the prices paid for storage.

Gabillon disputed Levin’s accusations, saying long wait times for aluminum stockpiles had no affect on the prices for companies and consumers.

“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.

“We are running a sales process right now and we have a variety of interest from companies in Europe, in Russia and in China,” Gabillon said during the question-and-answer portion of the hearing.

The cash price of primary Indian aluminum saw the biggest upwards shift for the day, rising 0.4% to close at INR 126.30 ($2.04) per kilogram on Friday, November 21. On the LME, the primary aluminum cash price fell 0.4% to $2,017 per metric ton. The aluminum 3-month price weakened by 0.2% on the LME, settling at $2,010 per metric ton.

* Get the complete prices every day on the MetalMiner IndX℠

Chinese aluminum prices closed flat for the day. Chinese aluminum scrap stayed flat at around CNY 12,950 ($2,115) per metric ton. At CNY 14,000 ($2,287) per metric ton, the price of Chinese aluminum billet was essentially unchanged. The price of Chinese aluminum bar saw essentially no change for the fifth day in a row, remaining around CNY 14,200 ($2,319) per metric ton. The cash price of Chinese aluminum was unchanged at CNY 13,660 ($2,231) per metric ton.

This week, the US Senate released a report gathering findings of a 2-year investigation into Wall Street banks’ activities in commodities markets.

FREE Download: The Monthly MMI® Report – covering the Aluminum market.

It found that Goldman Sachs Group, JPMorgan Chase & Co. and MorganStanley exposed themselves to catastrophic financial risks, environmental disasters and potential market manipulation by investing in oil, metals and power plant businesses, according to the Senate report.

The banks’ involvement in physical commodities put them in the same vulnerable position as BP, the report said, which has been hit with multiple lawsuits and billions in fines as a result of the 2010 Gulf of Mexico oil spill.

The report had particularly harsh things to say about Metro International Trade Services, a network of metals warehouses in Detroit owned by Goldman Sachs, which the banking institution is now selling. Goldman’s ownership led to “merry-go-round” deals, which caused long queues to take delivery of aluminum and raised prices for consumers and companies, the report said.

Chinese aluminum scrap saw the largest upwards shift on the weekly Aluminum MMI®, rising 5.7% to settle at CNY 12,950 ($2,116) per metric ton. In the past week, the price of Chinese aluminum billet shot up 3.0% to CNY 14,000 ($2,288) per metric ton. The Chinese aluminum cash price closed last week at CNY 13,660 ($2,232) per metric ton, after a 0.1% drop. Chinese aluminum bar prices held steady from the previous week at CNY 14,200 ($2,321) per metric ton.

* Get the complete prices every day on the MetalMiner IndX℠

The 3-month price of aluminum fell 2.0% on the LME to $2,014 per metric ton after rising 1.1% the week before. Following a 1.3% increase in the week prior, the primary aluminum cash price fell 1.9% on the LME last week to $2,025 per metric ton. The cash price of primary Indian aluminum fell 0.4% for the week to settle at INR 125.75 ($2.03) per kilogram.

Korean 3003 coil premium over 1050 sheet remained essentially flat from the previous week at KRW 3,740 ($3.36) per kilogram. At KRW 3,890 ($3.49) per kilogram, the week finished with no movement for Korean 5052 coil premium over 1050 sheet. European 5083 plate traded sideways last week, hovering around EUR 2,854 ($3,609) per metric ton. European 1050 aluminum remained essentially flat from the previous week at EUR 2,496 ($3,156) 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.

The two-year US Senate investigation into banks’ commodities business has thrown a sharp light on the relationship between metals warehouses and their owners, the Financial Times reported.

FREE Download: The Monthly MMI® Report – covering the Aluminum market.

A 403-page document released on Wednesday alleges Goldman Sachs Group’s 2010 purchase of Metro International Trade Services, a Detroit warehouse operator, led to rising aluminum prices as the company paid incentives to holders of the metal to shuffle it between warehouses, artificially increasing the length of queues and creating the impression of strong demand.

It also alleges that Goldman executives and traders had access to information about Metro’s operations.

In a series of 6 “merry-go-round deals” the Senate report detailed how soon after Goldman took over Metro it offered incentives to Deutsche Bank, Red Kite, a London-based hedge fund, and Glencore to cancel warrants – legal title to specific lots of metal – to place aluminum in a queue to ship it out, and then deliver it back in to another Metro warehouse.

* Get the complete prices every day on the MetalMiner IndX℠

Following a three-day flat streak, the price of Chinese aluminum billet climbed by 0.7% to end at CNY 14,000 ($2,288) per metric ton on Thursday, November 20. The cash price of Chinese aluminum saw essentially no change for the fifth day in a row, remaining around CNY 13,660 ($2,232) per metric ton. The price of Chinese aluminum bar continues hovering around CNY 14,200 ($2,321) per metric ton for the fifth day in a row. The price of Chinese aluminum scrap remained essentially flat at CNY 12,950 ($2,116) per metric ton.

On the LME, the primary aluminum cash price inched up 0.5% to $2,025 per metric ton. On the LME, the 3-month price of aluminum rose 0.4% to $2,014 per metric ton. At INR 125.75 ($2.03), the Indian aluminum cash price finished the market day up 0.3% per kilogram.

Novelis announced it is on track to reach its goal of 50% recycled content of all of its products by 2015.

FREE Download: The Monthly MMI® Report – covering the Aluminum market.

Novelis  achieved 46% recycled content of its aluminum input in the latest fiscal year, which is up 3% from the previous year and 13% up against its 2007-09  baseline. The company says 50%  will be achieved because of an improvement in its can division, a key market, which accounts for 62% of its overall aluminum output.

Novelis’ aluminum can sheet was introduced to the packaging market this year with a minimum 90% recycled content and the company will convert its recycling plants and replace previous beverage can sheets with the new product by 2017.

Dropping 1.7% on the LME, the cash price of primary aluminum was the biggest mover on Wednesday, November 19, closing at $2,015 per metric ton. The aluminum 3-month price weakened by 1.6% on the LME, settling at $2,005 per metric ton. The Indian aluminum cash price fell 0.8% to INR 125.40 ($2.03) per kilogram.

* Get the complete prices every day on the MetalMiner IndX℠

Chinese aluminum closed mixed yesterday. Following a quiet couple of days, the price of Chinese aluminum scrap fell 0.4% yesterday to CNY 12,950 ($2,115) per metric ton. The price of Chinese aluminum billet remained essentially flat at CNY 13,900 ($2,270) per metric ton. The price of Chinese aluminum bar remained essentially flat at CNY 14,200 ($2,319) per metric ton. The cash price of Chinese aluminum saw little price change on Wednesday at CNY 13,670 ($2,233) per metric ton.

1 9 10 11 12 13 101