Prices experienced their biggest weekly drop so far in 2019 amid weakening demand outlook
March 9, 2019
LME 3M aluminum prices closed the week at $1,872 per mton, down 2.4% in weekly terms despite regaining 0.4% on Friday. Prices continued to test two-week lows on Friday, in a context of: a) growing concerns about domestic demand in China, b) yesterday’s announcement of monetary stimulus in Europe, c) China’s confirmed VAT reduction, and d) the US dollar holding near its strongest level in twenty months. The short-term technical outlook continues to deteriorate. Door remains open for $1,770 per mton amid bearish medium-term technical indicators.