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Metal Price News Week 44

Week 44 most important news, that have affected the metal prices

Todays commodity prices

3 months LME USD 1.825 / EUR 1.545

3 months CLME USD 6.795 / EUR 5.755

 

Last week the copper prices rose to a high, not seen since June 2018, USD 6.990. While aluminium prices stayed at the USD 1.850 level. The commodity prices rose on expectations of a US fiscal stimulus package and positive economic data from the Chinese industry. It is especially the demand from China that is driving the copper price higher.

 

But there is a lot of insecurity in the market, it seems like the commodity prices are falling again. The 2 phase of the Covid-19 are now escalating in Europe and America. The number of infected people is increasing rapidly and the increase in economic data are fading out. The financial markets are now experiencing risk off and the commodity prices have started to fall. At the moment copper is priced at USD 6.795 while aluminium is prices at USD 1.825. The copper price is much more volatile than the aluminium price.

 

Several international banks expect that the commodity price will rise in 2021. Goldman Sachs is expecting a bull market in 2021, the reason for this is rising inflation and demand due to global stimulus packages.

 

There are lot of factors that will influence the commodity price in 2021. The ability to recover from Covid-19 is crucial, stimulus packages and rising inflation are also factors that can drive the commodity price higher. In the opposite directions are lower economic growth due to Covid-19, but also after a recovery from Covid-19 an increasing production level.

 

It is not expected that the US election will have severe effect on the commodity prices the coming week. But the outcome of the US election can have an effect on the commodity price. As Joe Biden is much more environmentally conscious it is expected that there will arise a larger demand for copper and aluminium if Joe Biden becomes president of the US.

 

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

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