Aluminium Went Down During Profit Booking

In yesterday’s trading session, aluminium prices saw a slight decrease of -0.2%, ultimately finishing at 223.3. This dip was ascribed to profit bookings after recent increases, which were especially reinforced by higher premiums in Japan. Stronger-than-expected economic statistics out of China also helped the market, allaying worries about declining demand from the largest consumer in the world.

Positive sentiment in the commodity market was further aided by the first increase in U.S. manufacturing in one and a half years in March, rising prospects of an interest rate decrease by the European Central Bank, and intensifying tensions between Russia and Ukraine. In general, more output is expected in May, while there may be some uncertainty due to the Yunnan province’s drought.

Despite this, operating rates have increased in several processing sectors due to the customary peak season and ongoing regulatory initiatives to enhance demand. The consistent operations of domestic smelters contributed to China’s noteworthy 7.81% year-over-year growth in aluminium output in February. Regarding supply, a Japanese customer of aluminium consented to pay an extra $145 per metric tonne for shipments made between April and June, which represents a 61% increase over the prior quarter.

Leave a Reply

Your email address will not be published. Required fields are marked *