Aluminum stockpiles have risen consistently this year amid the downturn in the auto sector; however recent evidence that the economy is improving combined with confidence in Chinese purchases have lifted aluminum demand.
As LME aluminum prices have surged by 18% since early March, a timely announcement by Hydro Aluminium of Norway came out this week to quell any fears among aluminum consumers that capacity cutbacks would eventually bring the market into supply/demand balance and push up prices to levels seen last year. For full story, click here
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 prices closed at its best since last Thursday as LME inventories witnessed their smallest daily increase by 900 tones. For full story, 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.
Aluminum industry executives sent a warning to other market leaders that unless large aluminum producers make deeper output cuts, the entire industry will likely take many years to recover from the current slump. Just 10% of world aluminum output is slated to be taken offline, and unless this number is pushed higher by more output cuts long-lasting damage to the sector is possible.
London aluminium dropped to a five-year low on Tuesday as worries about slow demand overcame support from a soft dollar and plans to boost China’s economy. For full story, click here
Aluminum pared declines in LME after China, the world’s largest producer, decided not to lower export taxes that may have boosted supplies. Aluminium declined to $1,478 a tonne. 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
Aluminium currently at $1,820 per tonne on LME, have fallen just 22% since the first week of January ’08. For full story, click here
Tuesday, July 14, 2009