Metal Price News Week 42
Week 42 most important news, that have affected the metal prices
Todays commodity prices
3 months LME USD 1.860 / EUR 1.575
3 months CLME USD 6.720 / EUR 5.695
After a volatile start on the Golden Week in China the commodity market calm down and the commodity prices stayed calm. But Friday last week the aluminium price started to rise and broke through the USD 1.800 level and has also broken through the USD 1.850 level.
The reason for the rising aluminium price is mainly that there is a growing concern that Malaysia will closed down, due to Covid 19. If this happens Port Klang will close down. Port Klang is a huge aluminium hub, so it will affect the aluminium trade.
It is becoming a bigger and bigger problem to finance the stockpiling of copper in China. Traders are using the stockpiling for arbitrage, so that when the prices on London Metal Exchange (LME) are lower than in China, traders are buying metal in Europe and selling it in China. But the banks are now beginning to limit their exposure in commodities, which mean that it gets more difficult to finance the stockpiling. The fear is that the traders can be forced to sell their stock of copper and thereby reduce the copper price.
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.