08 NOVEMBER 2012MetalMiner
Novelis and other companies hit by falling aluminium prices
Edited by : AL CIRCLE
2 min read
Aluminum prices on MetalMiner’s monthly price index, though down by four points from 99 in October to 95 in November, had mixed results with some poorly performing such as the primary 3-month LME, European commercial 1050 sheet, Chinese aluminum billet and the Chinese primary cash price.
The downward pricing trend hurt at least one aluminum producer — Novelis Inc. reported a 62 percent drop in quarterly profits. “Although we see near-term pressure due to a slowdown in the global economy, we continue to believe in the strong long-term growth outlook for can, automotive, and specialties,” said Novelis CEO Phil Martens.
Meanwhile, other prices, such as Chinese aluminum bar and a range of semi-finished aluminum products in the Korean market, increased.
“Analysts like Harbor Aluminum believe aluminum prices will remain in the $2,000-2,200 range for the balance of this year,” said Lisa Reisman, managing editor of MetalMiner. “But the physical premiums remain and will reduce producers’ incentives to cut capacity, as reported earlier by MetalMiner.”
Price Drivers of the Aluminum Index Drop
Aluminum 3-month prices fell 10.1 percent on the LME to $1,911 per metric ton after rising 9.9 percent the previous month.
The Indian aluminum cash price finished the month 9.2 percent lower. European 1050 aluminum sheet finished the month down 4.8 percent. The price of European 5083 aluminum plate, meanwhile, closed the month down 0.8 percent.
Last month, the cash price of Chinese aluminum dropped 1.4 percent. After rising 0.3 percent the previous month, Chinese aluminum billet prices dropped 1.2 percent. Chinese aluminum scrap prices fell marginally, by about one dollar per metric ton, after rising 0.8 percent the previous month.
On the upside, Korean 1050 aluminum sheet increased 2.7 percent. Korean 3003 coil premium over 1050 sheet ticked up slightly. The price of Korean 5052 coil premium over 1050 sheet also ticked up just a bit last month.
The downward pricing trend hurt at least one aluminum producer — Novelis Inc. reported a 62 percent drop in quarterly profits. “Although we see near-term pressure due to a slowdown in the global economy, we continue to believe in the strong long-term growth outlook for can, automotive, and specialties,” said Novelis CEO Phil Martens.
Meanwhile, other prices, such as Chinese aluminum bar and a range of semi-finished aluminum products in the Korean market, increased.
“Analysts like Harbor Aluminum believe aluminum prices will remain in the $2,000-2,200 range for the balance of this year,” said Lisa Reisman, managing editor of MetalMiner. “But the physical premiums remain and will reduce producers’ incentives to cut capacity, as reported earlier by MetalMiner.”
Price Drivers of the Aluminum Index Drop
Aluminum 3-month prices fell 10.1 percent on the LME to $1,911 per metric ton after rising 9.9 percent the previous month.
The Indian aluminum cash price finished the month 9.2 percent lower. European 1050 aluminum sheet finished the month down 4.8 percent. The price of European 5083 aluminum plate, meanwhile, closed the month down 0.8 percent.
Last month, the cash price of Chinese aluminum dropped 1.4 percent. After rising 0.3 percent the previous month, Chinese aluminum billet prices dropped 1.2 percent. Chinese aluminum scrap prices fell marginally, by about one dollar per metric ton, after rising 0.8 percent the previous month.
On the upside, Korean 1050 aluminum sheet increased 2.7 percent. Korean 3003 coil premium over 1050 sheet ticked up slightly. The price of Korean 5052 coil premium over 1050 sheet also ticked up just a bit last month.
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