August 2011 | Aluminium Weekly Market Tracker
Chinese aluminium market view - 24 August 2011: Despite of the weak macroeconomic environment, strong fundamentals still witnessed
SHFE 3-month aluminium prices almost fell back to June’s level last Friday. It may because of the negative market sentiment caused by the fragile macroeconomic environment. However, there are still strong fundamentals to drag the prices back on a rising trend.
Corresponding to the deteriorating global economic outlook, the SHFE 3-month aluminium prices almost fell back to June’s level. Investors are becoming more risk averse and keeping moving their capital to low risk assets – gold, for example. The early August sell-off pushed the 3-month aluminium prices from Rmb18,545/tonne at the start of this month to last Friday’s Rmb 17,170/tonne, a 7.4% fall.
Even though prices witnessed a significant fall this month, we believed that this is a temporary pull back in line with the weakening economic sentiments outside China. Chinese...
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