Week 20 most important news, that have affected the metal prices
Todays commodity prices
3 months LME USD 1.480 / EUR 1.370
3 months CLME USD 5.250 / EUR 4.850
Overall the commodity prices are still driven by news of the coronavirus and the global economies. But slowly, and still in small scale, focus have returned to the commodity market also. It seems like the commodity prices have reached bottom and are on the way up again, but it is expected that there will be bumps on the way. The trade volumes on London Metal Exchange have gone up, indicating that the trades are returning to their jobs and that demand are picking up.
The aluminium prices are still very low but it has kept some momentum and stayed in the arear USD 1.440 – 1.460 the last 14 days. Generally aluminium have not been much affected by any news the last 2 weeks. Copper have been more volatile. The last 2 weeks copper have been moving in the span between USD 5.070 – 5.240.
Chinese stockpiling and slowly picking up demand are absorbing the bad news from the economic data. On Shanghai Futures Exchange (SHFE) the copper stock fell over 10% from April 24th to April 30th. The stock on SHFE is still very high, over 230.000 ton. The reason for the Chinese stockpiling is an expected VAT reduction, where stockholders are buying now and deduction the high VAT and selling later with a lower VAT.
There have been news regarding the already signed trade agreement between China and USA. The Chinese are trying to change the agreement, where they have to buy American goods for USD 200 billions during a 2 year span. USA do not wish to change the trade agreement. This probably means that the future trade negotiations will be postponed.
Factors that makes the price higher
News reading coronavirus.
Announcement of public stimulus in China, Europe and USA.
Trade agreements between China and USA.
Factors that makes the price lower
News regarding the coronavirus.
Low economic growth from China, US and Europe.
The trade war between China and USA. There is a possibility that there will not be an agreement before the summer 2020, probably later.