LME price plunges further; Monetary cycle shift deflationary for aluminum

1. LME prices extend heavy losses amid failure to consolidate above last year’s peak of $... per mton.

2. LME PRICE SPECIAL ALERT. Shift in Fed's monetary policy stance is seen as deflationary for aluminum. Aggressive monetary tightening could result in a steeper slowdown in aluminum demand and roses the odds of a correction in LME prices.

3. China’s aluminum prices plunge from near-four-month highs.

4. ALERT! – CHINA ALUMINUM. ACCELERATING RESTARTS: Yunnan primary aluminum producers accelerating the pace of restarts as hydroelectricity supply improves.

5. EUROPEAN BILLET ALERT. CYCLE PEAK? Q2 contractual premiums seen as potential cycle peak by some extruders and suppliers alike.

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6. EUROPEAN SCRAP ALERT. POSITIVE DEMAND EXPECTATIONS: Secondary scrap prices up, as consumers foresee more competition from Asia.

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7. LME Cash–3M backwardation moderates to a three-week low but still exerts bearish pressure on P1020 premiums.

More details in full report.