Aluminum’s fundamentals remain dire, despite the upswing in Chinese Imports. Imports in the country are rising due to an arbitrage opportunity as Shanghai Futures Exchange aluminum is selling at a premium of $400-$500 per tonne on the London Metal Exchange.
Aluminum futures bounced from a seven-year low due to sharp rebound in U.S. equities Tuesday, but grim U.S. economic data kept sentiment sour. For more information, click here
Aluminum prices are near five-year lows as orders drop from automakers, builders and appliance manufacturers. The global recession, collapsing consumer and corporate confidence and plunging demand for industrial metals have combined to drop the aluminum prices on the LME to their lowest monthly rate since April 2003.
The price of aluminum has slumped some 50 percent since peaking at $3,380 per tonne last July as the global economic downturn has hit demand for the metal. To kick off 2009, the aluminum market received some positive news as the metal climbed to a three-week high in Shanghai trading.
Shanghai aluminium rose by 1.8 per cent to 10,585 yuan after it too slid by its 4 per cent maximum in the previous session. For full story, click here
LME aluminium rose $15 to $1,485 while Shanghai aluminium rose by 1.8 per cent to 10,585 yuan. For full story, click here
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