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ALUMINIUM-Major market developments in June
Edited by : AL CIRCLE
1 min read
Aluminium prices lost ground in June and while they may drift lower as demand softens for seasonal reasons, the market is expected to hold firm in coming months even though it is on course for another year of supply surplus.
"Demand has slackened a bit, but we expect it to accelerate after the summer slowdown, with robust growth from both transport and packaging," said Credit Agricole analyst Robin Bhar.
Independent consultant Angus MacMillan expected the market to meet with support at $2,400/2,350 if the $2,500 level is breached with conviction.
The London Metal Exchange (LME) three-months aluminium price was last indicated at $2,485 a tonne.
MacMillan said vast inventories and the prospect of another year of supply surplus would not dent sentiment because a large amount of LME warehouse stocks were still tied up in financing deals and not immediately available.
"In the meantime, though, output is rising while demand growth outside top consumer China is slowing," he added.
Neil Buxton, managing director of GFMS Consulting also pointed to slackening demand and thought prices would generally ease in the next month or two.
"Demand has slackened a bit, but we expect it to accelerate after the summer slowdown, with robust growth from both transport and packaging," said Credit Agricole analyst Robin Bhar.
Independent consultant Angus MacMillan expected the market to meet with support at $2,400/2,350 if the $2,500 level is breached with conviction.
The London Metal Exchange (LME) three-months aluminium price was last indicated at $2,485 a tonne.
MacMillan said vast inventories and the prospect of another year of supply surplus would not dent sentiment because a large amount of LME warehouse stocks were still tied up in financing deals and not immediately available.
"In the meantime, though, output is rising while demand growth outside top consumer China is slowing," he added.
Neil Buxton, managing director of GFMS Consulting also pointed to slackening demand and thought prices would generally ease in the next month or two.
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