Week 25 most important news, that have affected the metal prices
Todays commodity prices
3 months LME USD 1.605 / EUR 1.415
3 months CLME USD 5.800 / EUR 5.105
This last week started with optimism where aluminium price rose to USD 1.630 and copper prices rose above USD 5.900 then the optimism was replaced with risk off where aluminium fell to USD 1.575 and copper fell to USD 5.720 and now there is a little optimism back in the metal market. At the moment aluminium is around USD 1.600 and copper is around USD 5.800.
The week started with optimism because there where focus on then reopening after Covid-19, then came the news of new outbreaks and the markets began to fall in fear of a second wave of Covid-19. This morning the markets again began to rise partly through FEDs announcement that they will start buying corporate bonds, but especially because there are rumors that the American government later this week will announce a new stimulus package with a value over USD 1 billion. The stimulus package will have focus on investing in US infrastructure.
The volatility in the metal prices shows how fragile the metal markets still are and it is expected that the prices will stay volatile for now. There is no specific information about the American stimulus package and disappointing news could mean that the metal prices will fall again, at the same time we are entering the summer holidays this generally means low activity, and then there is the insecurity regarding the second wave of Covid-19. All this brings a lot of uncertainty to the metal markets and can give a lot of volatility to the metal prices.
Factors that makes the price higher
Trade agreements between China and USA.
News reading coronavirus.
Announcement of public stimulus in China, Europe and USA.