August 2018 | Base Metals
Market Summary: Waiting for the dust to settle
Despite the lingering trade tensions, selling momentum in the base metals complex has slowed considerably and the dips are attracting bargain-hunting interest. Falling stocks and growing tightness in certain base metals are encouraging and supports our base case view that prices should recover higher if the positive fundamental backdrop can overcome the negative macroeconomic conditions.
Waiting for the dust to settle
Despite the lingering trade tensions, selling momentum in the base metals complex has slowed considerably and the dips are attracting bargain-hunting interest. Falling stocks and growing tightness in certain base metals are encouraging and supports our base case view that prices should recover higher if the positive fundamental backdrop can overcome the negative macroeconomic conditions.
Aluminium: Testing $2,000 per tonne
Even though exchange stocks continue to fall, which is a bullish undercurrent since it is the low demand season, aluminium prices remain under pressure amid trade uncertainties and dollar strength, which continue to drag on broader risk sentiment. Aluminium is approaching previous support around $2,000 per tonne, although we believe this should hold for the moment.
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