LME aluminum underperforms amid potential boost to Chinese semis exports.
March 6, 2019
LME 3M aluminum prices failed twice to climb back above $1,900 per mton, closing the session marginally down at $1,874 per mton (down 0.1% from yesterday). While most other base metals experienced solid gains bolstered by the announcement of fiscal/credit stimulus measures in China, aluminum was unable to sustain gains to levels as high as $1,893 per mton. The reduction in China’s VAT tax is bearish for LME aluminum prices. Failure to remain above $1,830 per mton could unleash fresh selling toward $1,770 per mton.