Market Summary: Pressure growing to boost flagging demand-side fundamentals

Pressure growing to boost flagging demand-side fundamentals
Overall the supply fundamentals across most of the base metals continue to tighten, or at least remain tight. But the outlook for demand is where the weakness is. The more the global economy weakens, the less impact tightening supply fundamentals will have on metal prices. However, should the demand outlook get a meaningful boost – from Chinese stimulus or a US-China trade deal – then the focus of the base metal market will return to bullish supply-side factors. Given deteriorating global economic data, the pressure to stimulate China’s economy and to find a trade deal is growing more urgent.

Aluminium: Remaining under selling pressure

The prospect of rising supply at a time when global consumption is uncertain does not bode well for sentiment...