ALUMINIUM INTERNATIONAL TODAY
Aluminum Association Highlights (for week ending Nov 25)
Edited by : AL CIRCLE
1 min read
The slide in aluminium prices continued last week.
Market View by Lloyd O’Carroll, Davenport & Company The slide in aluminium prices continued last week. The LME cash price is closing in on $2000/t which would be the lowest price since July 2010. The decline was justified in our view given a litany of negative news and economic data.
The week began with the rumblings, which were later confirmed, that US congressional super-committee failed to reach an agreement on budget cuts.
Although there is no immediate impact, it was a reminder to the market that the Beltway remains gridlocked on how to lower the ballooning US debt.
Later in the week, economic data showed that manufacturing in both the euro zone and in China contracted in the past month, according to purchasing managers surveys.
In the US, durable goods orders were down. While evidence suggests aluminum demand is soft, the supply side is already reacting to low prices. Global aluminum production was down a sharp 3.6% in October versus September. This amounted to an annualized cut of 1.6Mt, all of which came from China.
Market View by Lloyd O’Carroll, Davenport & Company The slide in aluminium prices continued last week. The LME cash price is closing in on $2000/t which would be the lowest price since July 2010. The decline was justified in our view given a litany of negative news and economic data.
The week began with the rumblings, which were later confirmed, that US congressional super-committee failed to reach an agreement on budget cuts.
Although there is no immediate impact, it was a reminder to the market that the Beltway remains gridlocked on how to lower the ballooning US debt.
Later in the week, economic data showed that manufacturing in both the euro zone and in China contracted in the past month, according to purchasing managers surveys.
In the US, durable goods orders were down. While evidence suggests aluminum demand is soft, the supply side is already reacting to low prices. Global aluminum production was down a sharp 3.6% in October versus September. This amounted to an annualized cut of 1.6Mt, all of which came from China.
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