Week 48 most important news, that have affected the metal prices
Todays commodity prices
3 months LME USD 1.745 / EUR 1.585
3 months CLME USD 5.870 / EUR 5.330
Like last week there have not been much movement in the commodity prices this week. The commodity prices stays steady around LME USD 1.750 and CLME USD 5.875. There have been some trade talks this last week, but not with any decisive new. So the commodity prices have moved a bit up on the news, and when nothing has happen, the commodity prices have fallen back again.
At the moment copper consumption is expected to grow by an annual rate of 2 – 3%. Assuming that the growth in copper demand will be stable, then the demand for refined copper will emerge by 7 mio. tonnes by 2030. This will mean that the world is lacking investments in new mines, the smelting capacity is on the way up, but especially the new mines are missing.
The physical stock for aluminum on LME has increase by over 200.000 tonnes the last 10 day. But despite the increase in physical stock the LME price have remained steady.
Factors that makes the price higher
Announcement of public stimulus in China.
The trade war between China and USA.
Factors that makes the price lower
Low economic growth from China, US and Europe.
Chinese aluminum producers are ramping up production on improved aluminum prices, with output at one smelter - Shanxi Meixin Industry - now running at full capacity of 300,000 tonnes per year.
The trade war between China and USA. There is a possibility that there will not be an agreement before the summer 2020.