Market Summary: Price weakness contained for now

Price weakness contained for now
Base metal prices have been slipping in recent weeks. Given that the whole group is suffering, the drivers are likely to be broad and macro-related rather than metal-specific. Since speculative positioning is neutral and recent price weakness has not irreversibly damaged the technical picture, the complex could turn higher again on the back of dollar weakness, further improvements in macro data, or news of a US-China trade deal.

Aluminium: Oversold

With speculative positioning remaining heavily net short, the main risk to LME aluminium prices in the near term is to the upside. And we believe that uptrend momentum is likely to continue in the near term for SHFE prices due to falling stocks in China and improving demand there. But we are still more cautious...