The Economic Times
Commodity wrap: Data sends mixed signals
Edited by : AL CIRCLE
1 min read
Aluminium prices fell to their lowest in three weeks following the declining trend across industrial metals amid fears of a Greek default in addition to disappointing economic data from China. But positive data from the US, one of the triggers for the commodity rally since January, reduced losses by the end of the week.
Aluminium has rallied 8% since January and considering that the global aluminum stocks-to-use ratio is at a 12-month high, gains may be limited.
Data shows that the difference in spot and 15-month forward price is at a three-year high supported by the low interest rate scenario in the US and Europe. The shrinking of this premium could lead to a bearish trend in aluminium, analysts said.
Aluminium has rallied 8% since January and considering that the global aluminum stocks-to-use ratio is at a 12-month high, gains may be limited.
Data shows that the difference in spot and 15-month forward price is at a three-year high supported by the low interest rate scenario in the US and Europe. The shrinking of this premium could lead to a bearish trend in aluminium, analysts said.
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