Metal Price News Week 2
Week 2 most important news, that have affected the metal prices
Todays commodity prices
3 months LME USD 1.830 / EUR 1.630
3 months CLME USD 6.160 / EUR 5.475
The tumults in the Middle East have not had a big effect on the commodity prices at first the aluminum prices rose a little bit while the copper prices fell, but here 2 days after, it seems like the prices are back at their levels. There is still a lot of uncertainties regarding the situation in the Middle East. If the situation escalates it is expected to affect the commodity prices.
Copper have been trading in USD 6.210 but has fallen back at USD 6.160. There is still a positive trend in copper. The reason for this positive trend is the continuing falling stock at London Metal Exchange (LME) and the growing demand from China. There is a growing demand from China, for copper to use in electrical vehicles.
The aluminum stock at LME have peaked for now, and the stock have been falling the last 2 weeks, this have had a positive effect on the aluminum price which now are over USD 1.820 for the first time since the beginning of November.
The first part of the trade agreement between China and USA is expected to be signed on January 15th, this could have a positive effect on the commodity prices.
Copper have fallen below USD 6.200 pr. ton. There is a positive trend for copper and the prices might go higher again. There is also a positive trend around aluminum at the moment. Aluminum have already risen above USD 1.820. The positive trend might change if the stock starts rising again.
Factors that makes the price higher
Announcement of public stimulus in China.
Trade agreements between China and USA.
Factors that makes the price lower
The situation in the Middle East
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.