Calm before the storm Falling stocks and aluminium’s technical configuration are creating a backdrop that could support higher prices in the short to medium term. Shorts may be getting more nervous. But in the current climate of uncertainties over both supply and demand-related issues, it is unlikely that there will be much appetite to chase the market significantly higher. As such, we expect choppy trading, especially with China on holiday this week and LME Week after that. But around $2,000 per tonne, the risks are to the upside....
It may be a volatile week with China on holiday, but the metals may get directional again next as the industry meets for LME Week.
Aluminium: Upside potential
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