INTL AL CONF: Macro factors, not fundamentals, to drive aluminium price, analysts say

Future increases in aluminium prices will be driven more by macroeconomic factors rsther than supply-and-demand fundamentals into 2021, analysts said in a panel on Tuesday September 22 during Fastmarkets' International Aluminium Conference.

"The V-shaped recovery that we've been seeing in many of the metals is also macro-driven," Fastmarkets research analyst Andy Farida said.
Factors such as a weak US dollar, quantitative easing (QE) from global central banks and stimulus-related infrastructure spend were likely to boost aluminium.
"There is plenty of scope for the prices of aluminium and other metals to rise on broader macro factors, continuing QE, the decline of the dollar, and some of these other issues we were discussing," Duncan Hobbs, research director at trading house Concord Resources, said.

On the London Metal Exchange, aluminium traded at a year-to-date high on September 1, with the aluminium 3 months LME Daily Official price at $1,818 per tonne. Although the price has since dropped back below $1,800 per tonne - to $1,759 per tonne on September 23 - it remained much higher than the $1,459 per tonne to which it...

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