This weeks most important news, that have affected the metal prices
Todays commodity prices
3 months LME USD 1.640 / EUR 1.440
3 months CLME USD 5.840 / EUR 5.130
Both aluminium and copper prices have risen this last week. Aluminium has broken through USD 1.600 per ton, and copper has breached USD 5.800 per ton. The main reason for this rise was Fridays unemployment (non-farm payroll) for May from USA. The expectation was that the unemployment would increase with 7,75 mio. persons, but instead the unemployment decrease with 2,5 mio. persons.
At the same time the Chief Financial Officer from Alcoa stated that China is leading a V-shaped recovery from the aftermath of Covid-19. China is one of the countries which first started to reopen the country after Covid-19, so many are looking at China to see what should be expected in Europe and USA. This also had a positive impact on the metal prices.
The news regarding the US Non-farm payroll and the continuing opening of more and more countries gave optimism to the financial markets which caused the metal prices to rise.
On London Metal Exchange (LME) there have been registered more position on copper, then on aluminium, this indicates that there is a bigger interest for copper then for aluminium. The aluminium stock on London Metal Exchange (LME) have also been increasing since the middle for March, while the copper stock has stayed at the same level. This is some of the reason why copper has increased more then aluminium, and why copper is more volatile then aluminium.
Factors that makes the price higher
Trade agreements between China and USA.
News reading coronavirus.
Announcement of public stimulus in China, Europe and USA.