Manufacturing contraction in Europe and Japan maintains downward pressure on LME prices

LME 3M aluminum prices re-tested Monday’s low of $1,880 per mton, falling in tandem with most of the commodity complex due to: a) disappointing manufacturing activity data out of Germany, the US, and Japan, and b) fears of a broader economic slowdown triggered after the Fed downgraded its view on the economy. Nevertheless, aluminum prices were supported by technical buying late in the session and closed the session at $1,903 per mton (up 0.2% or $3.50 per mton from yesterday), outperforming declines of nearly 2% for oil, copper, and world equity prices.

More details in full report.