LME prices fall as expected and remain vulnerable to selling; contango widens (premium supportive); ROW’s production expansion gathers momentum
1. As anticipated, LME prices fell today by 1% and remain vulnerable to more selling profit taking and producer selling this week.
2. MEXICO ROLLING MILL ALERT. MORE SUPPLY SHORTAGES: Chinese mills reluctant to ship common alloy coils to the Mexican market without renegotiating price up. For more details, please subscribe to our specialized Aluminum Rolled Products Intelligence Report.
3. LME Cash–3M contango widens amid easing nearby conditions (supportive for premiums around the globe).
4. ALUMINUM PRODUCTION UPDATE. China’s primary aluminum production accelerates to record levels while ROW’s production expansion gains momentum.
5. China’s aluminum prices remain near three-year highs but face profit taking.
More details in full report.