Market Summary: An important week

An important week
While base metal prices have suffered in line with the downturn in economic activity, which we blame largely on the US-China trade dispute, generally the fundamentals have remained tight, especially on the supply side. Should a US-China trade deal be forthcoming then we would expect business confidence to rebound, supply chains to restock and more severe tightness to emerge. The meeting planned between the US and Chinese presidents at the G20 later this week could be an important first step in putting some sort of deal back on the horizon. It could therefore have a big bearing on price direction for the base metals in Q3.

Aluminium: Bracing for short-covering

Signs of stronger physical demand and declining LME stock...