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Metal Price News Week 21

Week 21 most important news, that have affected the metal prices

Todays commodity prices

3 months LME USD 1.495 / EUR 1.365

3 months CLME USD 5.310 / EUR 4.850

 

News regarding a possible vaccine against Covid-19 and the EU coming at a relief packed up to EUR 500 bio. have generated overall positive news. On a more specific note the commodity market rose after the Chinese industrial production for April showed an increase of 3,9% (on a yearly basis), the expected increase was 1,5% (on a yearly basis).

 

Because of the Chinese industrial production and falling oil stock in US, the oil price has started to rise again, and so have the metal prices. For copper we have broken through 5.300 USD/ton, and aluminium is at the moment trying to break through 1.500 USD/ton. There should be a good possibility to stay above these levels, but it is still a bumpy road and news regarding the trade agreement between US and China, and Covid-19 still has a big influence on the commodity prices.

 

On a different note Alcoa have called on the aluminium industry to cut their aluminium production to accommodate the lower demand for aluminium. But generally the aluminium industry have not be good at making such cooperation, and for now the capacity continues to grow. Also it is not an easy process to close down an aluminium smelter and to open it later again.

 

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. There is a possibility that there will not be an agreement before the summer 2020.

 

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