Week 8 most important news, that have affected the metal prices
Todays commodity prices
3 months LME USD 1.705 / EUR 1.560
3 months CLME USD 5.765 / EUR 5.290
A new week where the outbreak of the coronavirus has been in focus. Earlier this last week there where news out regarding finding a cure for the virus, but this was later dismissed. This meant that the LME prices briefly went higher, but the commodity prices feel back again as the news were dismissed.
We are now starting seeing more problems with the closed down of Chinese production, Apple have announce that they expect low sales 1. Quarter of 2020, due to the coronavirus and Hyundai has stopped part of their production in Korea due to missing parts from China.
Several Asian economies have started to stimulate their economies as they fear that the coronavirus will affect the economic growth. This helps keeping the commodity prices at the current levels. The economic expectations for Europe (PMI, ZEW etc.), especially Germany, have come out poorly. For now this is overshadowed by the coronavirus, but it might affect the commodity prices later on.
Factors that makes the price higher
Announcement of public stimulus in China.
Trade agreements between China and USA.
Factors that makes the price lower
The coronavirus in China.
Low economic growth from China, US and Europe.
The trade war between China and USA. There is a possibility that there will not be an agreement before the summer 2020.