Metal Price News Week 41
Week 41 most important news, that have affected the metal prices
Todays commodity prices
3 months LME USD 1.785 / EUR 1.515
3 months CLME USD 6.540 / EUR 5.550
The Golden Week in China had barely started before the commodity prices started to fall. On Thursday, last week, the commodity prices fell, starting with oil prices and continuing to metal prices. The aluminium price fell over 2%, while the copper price fell over 5%. This was the deepest sell-off in copper since March 18th. The aluminium price has been quick to recover, but the copper price has been a bit more slow and are still not back at the USD 6.700 – 6.800 level.
There are many reasons for the fall in the commodity prices, higher oil production lead to falling oil prices, at London Metal Exchange (LME) have reported an increase in the copper stock for over 90.000 ton, this was an increase of more then 100%. US president was reported hospitalized with Covid-19, the job report from US was lower then expected. All in all it just seemed like the market toke some risk-off.
The huge fall in the commodity prices also shows how uncertain the market is. Some disappointing news, leads to falling prices, and suddenly everybody is closing positions out of fear.
The Chilean Copper output fell over 6% in August versus a year ago. The output for the first 8 months in 2020 where 3,78 mio. ton, which where more or less the same as for the first 8 months in 2019. This is seen positive considering the problems there have been in 2020. But the Chileans mine workers have voted in favor of a strike, so there is still much uncertainty about the output for the rest of the year.
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.