Week 49 most important news, that have affected the metal prices
Todays commodity prices
3 months LME USD 1.790 / EUR 1.620
3 months CLME USD 5.830 / EUR 5.265
At the beginning of last week there where optimism for a trade agreement between China and USA, this meant that copper prices rose. But on Thursday USA signed a resolution supporting the Hong Kong protestors, which have postponed the trade agreement, and therefore copper prices have fallen again. The copper prices have fallen USD 30 – 50 every day since Thursday.
The aluminum prices have remained steady during the trade process between USA and China. Monday USA decided to impose a new tariff on steel and aluminum from Argentina and Brazil. USA claims that Argentina and Brazil have been devaluating their currencies, which is a problem for US farmers, and therefore the US is imposing this new tariff. Argentina is among the 10 largest aluminum exporters to USA. The new tariff have influenced the aluminum prices to increase to USD 1.790, which is an increase by USD 30 since yesterday.
Factors that makes the metal prices go higher
Announcement of public stimulus in China.
The trade war between China and USA.
Factors that makes the metal prices go 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.