This weeks most important news, that have affected the metal prices
Todays commodity prices
3 months LME USD 1.530 / EUR 1.365
3 months CLME USD 5.495 / EUR 4.910
The commodity markets continues to rise. Aluminium is well USD above 1.500 per ton, and copper has breached USD 5.400 per ton and are nearing USD 5.500.
Last week several countries announced the manufacturing Purchase Manger Index (PMI) for May. This gave a mixed picture. Italy and France had higher PMI than expected, while Spain, Germany, USA and China had lower PMI. The positive news for Chinese PMI was that May was 50,3, up from 49,3 in April.
Many of the auto plants, which closed down medio March, have now started up again or are planning to start again. This is expected to have a positive effect on the auto intensive metals, especially aluminium and steel.
There has not been many news regarding lost production due to the Covid-19 virus. But on Friday Peru announced that they expect af 15% metal production loss due to the closedown. If the financial markets start to focus more on the production loss this may lead to increasing metal prices.
But for now the financial markets are focusing on the tensions between USA and China, to see if the first phase of the trade agreement continues to hold, or if USA will pull out. Last Friday US focused on WHO and Hong Kong and not on the trade agreement with China, this was a relief for the financial markets, which meant that the commodity prices rose.
Factors that makes the price higher
Trade agreements between China and USA.
News reading coronavirus.
Announcement of public stimulus in China, Europe and USA.