LME price up on journey toward $... per mton; European foundry demand hit by the semiconductor crisis
May 4, 2021
EUROPE PFA ALERT.
1. LME prices bounced back to a fresh three-year high as commodity complex continues to rally. Technically speaking, $... per mton is still a short-term possibility, although levels above $... per mton are seen as unsustainable.
2. The Shanghai Futures Exchange (SHFE) was closed today due to the International Workers’ holiday. Overnight and after-hours trading will resume on Thursday, May 6.
3. CHINA SCRAP ALERT. THE BOOM IS HERE: China is the world’s largest aluminum recycler, and…it’s just the beginning.
4. EUROPE PFA ALERT. NEGATIVE IMPACT IS HERE: Semiconductor crisis finally hits European PFA demand.
5. LME backwardation at the far end of the curve continues to intensify; Cash–3M backwardation remains steep.
More details in full report.