Steel Products Prices North America
July 7, 2023
CRU Aluminum: It’s a Small World
Written by Stephen Williamson
The LME aluminum 3-month price is moving down again after the 4th of July holiday and was last trading near $2,130 per metric ton (as of the writing of this article on July 7). The fact that the price resumed sharp declines and is not challenging the next resistance at $2,200 per metric ton shows how bearish sentiment has turned. Now off 9.6% since the beginning of the year, some upside in the second half of this year may be possible on the LME if demand returns.
The Shanghai Exchange (SHFE) aluminium price was also down -1% this week. The cash contract settled at RMB18,190 per metric ton (~$2,519 per metric ton) and last traded at RMB18,215 per metric ton. Asian stock markets dropped sharply on Wednesday after a private survey showed Chinese service and manufacturing activities weakening further in June. While the news is not worse in North America, a retrenchment of demand anywhere in the world further undermines global market sentiment.
