13 JULY 2016www.investing.com
July aluminium price forecast: Watch out for pound depreciation
Edited by : AL CIRCLE
2 min read
Spot aluminium prices on the European market traded slightly lower last week as worries over Brexit and its impact on future demand influenced buyers.
Wrote Donald Levit of Economic Calendar: “While there is not expected to be a huge shift in aluminium demand as the U.K. slowly decouples itself from the European Union, a general air of uncertainty is pressuring the sentiment around aluminium demand and prices are responding by dropping slightly.”
Levit added that Brexit is not expected to have a sudden impact on demand for aluminium but prices for the metal could fluctuate as the result of currency valuations. Forecasts currently call for a depreciation of the pound, but other factors stemming from Brexit — including slow economic growth and lagging U.K. vehicle sales — could team up to put further pressure on aluminium prices.
Meanwhile, in China …
MetalMiner reported that Chinese aluminium output has recovered, following a price rebound with a run up in Shanghai aluminium prices spurring an increase in Chinese aluminium production and exports in recent months.
We encourage North American manufacturers, especially those that source internationally, to keep a close eye on the Brexit fallout as it is sure to have a major impact on metal prices, including aluminium in the months to come.
Wrote Donald Levit of Economic Calendar: “While there is not expected to be a huge shift in aluminium demand as the U.K. slowly decouples itself from the European Union, a general air of uncertainty is pressuring the sentiment around aluminium demand and prices are responding by dropping slightly.”
Levit added that Brexit is not expected to have a sudden impact on demand for aluminium but prices for the metal could fluctuate as the result of currency valuations. Forecasts currently call for a depreciation of the pound, but other factors stemming from Brexit — including slow economic growth and lagging U.K. vehicle sales — could team up to put further pressure on aluminium prices.
Meanwhile, in China …
MetalMiner reported that Chinese aluminium output has recovered, following a price rebound with a run up in Shanghai aluminium prices spurring an increase in Chinese aluminium production and exports in recent months.
We encourage North American manufacturers, especially those that source internationally, to keep a close eye on the Brexit fallout as it is sure to have a major impact on metal prices, including aluminium in the months to come.
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