LME prices plunge 2% amid downbeat economic signals and potential demand disruptions
March 21, 2019
LME 3M aluminum prices closed the session down 1.9% or $37.50 per mton at $1,899.50 per mton. Prices declined throughout most of the session and closed near an intraday low, as: a) the market reacted to yesterday’s downgrade of interest rate and economic growth expectations by the Fed (bearish for aluminum demand and LME prices); b) the US dollar bounced back sharply; and c) Hydro informed that its extruded-products unit is running at 50% of normal. Short-term correction could extend to $1,850 per mton, the low end of the prevailing trading range. From a medium-term standpoint, we continue to believe that prices have not bottomed out yet.
More details in full report.