Base Metals Price Dashboard

November 20, 2020
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Aluminum has been a consistent winner this month, tacking on a 10% gain in near-term prices. 

Aluminum’s rise started before the COVID-19 vaccine announcements that positively affected multiple asset classes on November 9. Still, the expectation of greater economic output has helped raw materials gain.

Clients have recently reported greater-than-expected demand in automotive and building & construction sectors.

Cash and three-month aluminum prices have expanded in the last several weeks, approaching the $2,000 mark.  If you were a producer, it was a good few weeks. Consumer hedges made just a few weeks ago would have prevented material costs from ballooning by over 10%. 

Aluminum (for delivery in three months) has only had two down-days during November.

LME aluminum’s 10% rally since the end of October occurred in forward pricing, too.

Bottom Line:  Base metals, associated with global economic output, are likely to rise in the short term due to increased consumer demand, physical market imbalances, low interest rates, and a weak USD. The primary aluminum market surplus continues to be ignored by the market. 

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